The Secretary General of the Central Organization of Trade Unions (COTU), Francis Atwoli, has passionately appealed to Members of Parliament to dismiss any proposed bills that aim to increase tax burdens on the hardworking citizens of Kenya.
Delivering this plea during a funeral ceremony in Kakamega county, Atwoli specifically directed his request toward Ikolomani MP Bernard Shinali, urging him to withdraw the unemployment insurance authority bill. In its current form, this bill seeks to impose additional taxes on workers and enable those temporarily out of work to continue receiving their salaries.
Atwoli highlighted the challenging financial situation many workers face, attributing their plight to the already substantial tax burden imposed by the government. He argued that further tax increments would produce meager earnings for numerous informal laborers.
He expressed his concern, stating, “I earnestly implore Shinali to abandon any proposals related to the employment levy, as our payslips are already subjected to significant deductions. There is very little left for us on our payslips.”
Atwoli emphasized the need for economic viability before introducing more taxation, asserting that Kenya’s top priority should be fostering economic growth. He mentioned the “Kenya Kwanza” initiative, which aims to implement strategies to boost economic development, and cautioned against adding more financial burdens on Kenyan citizens before these efforts take effect.
Atwoli’s passionate appeal comes after several recent tax increases announced by the government in the Finance Act of 2023 to revive the country’s struggling economy.
One of the most contentious changes involves a 3% monthly contribution to the Housing Fund for formal sector workers, effective July 1. This levy will be shared equally between employees and employers, each contributing 1.5%.
Additional tax hikes include a doubling of the tax rate on petroleum products, an increase in taxes on the importation of second-hand vehicles, and the introduction of a 15% Excise Duty on advertising fees for alcoholic beverages, betting, gaming, lotteries, and prize competitions across various media platforms, including TV, print media, billboards, and radio stations.
Furthermore, millions of Kenyan mobile money service users will face extra charges due to the 15% Excise Duty increase on these services.
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