Kenya’s Parliament is now divided down the middle days after the government unleashed a tax proposal on their allowances.
Kenyan Member’s of Parliament are up in arms with the government and have sworn to scuttle the move an issue that has since threatened its unity.
The MPs, who are not batting an eye lid while giving vague reasons on why they should not be taxed, are up in arms with the government which is still making initial steps towards economic growth which was almost brought to its knees by the post – election violence that hit the country early this year.
Through its finance minister, the government announced the proposal during the country’s budget presentation last week.
MPs have since threatened to shoot down a plan to tax their allowances though the minister has so far stuck to his guns and insists that the legislators have to pay taxes like any other Kenyan. Even MPs allied to the Government have vowed to vote against the plan.
Some even accused the minister of shifting public attention from more important issues like inflation and the reconstruction of the country. Some assistant ministers have accused the government of playing to the gallery by making the announcement. But the move was supported mainly by Cabinet ministers, some who said it was long overdue.
In making the suggestion, the government had observed that its earlier request to MPs to initiate the tax move in last year’s Budget had not been heeded. Already, the Government has published a Bill proposing to scrap the section of the National Assemblies Remuneration Act which protects MPs from paying taxes on their allowances, which amount to nearly KSh 600, 000 a month per law maker.
The government had also suggested that constitutional office holders, including the Attorney General, Public Service Commissioners, Electoral Commissioners, the Controller and Auditor General and judges be compelled to pay taxes on their allowances.
In Parliament on Wednesday, the MPs supporting the tax plan said it was time to start leading by example while those opposed to it accused the government of politicking and trying to drive a wedge between MPs and the public.
The 222 MPs each earn over KSh 800, 000 per month, out of which KShs200, 000 is their basic salary for which they pay taxes. The rest of the money is exempted from tax. If the law were to be changed, each MP would pay at least KSh 233,931 in taxes per month in Pay-As-You-Earn based on the minimum KSh800, 000 package. Their combined tax would contribute at least KSh51.9 million a month or KSh802.8 million a year to the Treasury.
This amount is more than the KSh 656.7 million they are asking for to refurbish the debating chamber, buy new cars, fund foreign trips and pay retirement benefits for former legislators among other expenses of the House.
This issue ahs continually elicited debate across the country as the Kenyan citizens also feel that the MPs should be subjected to tax deductions like any other person.
Religious leaders as well as the civil society have castigated members of Parliament opposed to the taxation of their allowances saying that
the refusal to pay tax on their allowances was an abuse of authority.
“What moral authority would the MPs have to determine taxation for others while they do not pay? It is an abuse of the authority bestowed on them by their constituents,” the religious leaders said.
Two days ago, two government officials separately said the Government would ensure that MPs paid taxes like everybody else. Now the civil servants have joined the fray and are demanding a tax waver on their salaries if the law makers fail to adhere to the proposal.
The angry civil servants said it was unrealistic to tax people earning less than KSh 20,000 while exempting those earning more than KSh800, 000.