Friday, August 23, 2024

Kenya: Soaking the poor


‘Curb pollution at the household level’ It’s capitalism that’s the real problem.

‘A revised version of the controversial eco-levy tax will soon be tabled in Kenya’s Parliament.’

‘Speaking to Citizen TV Kenya, Treasury Secretary John Mbadi confirmed that "about 49 measures" were being considered as part of a tax amendment bill.

The eco-levy tax aims to curb pollution and waste management at the office and household level.

Unlike the initial proposal, this one will exclude sanitary towels, the newly appointed secretary has insisted.

Companies remains in the authorities' sights. The minister rebuked a challenge by US beverage manufacturer Coca-Cola which opposed the 10 percent levy on all locally manufactured plastics.

"They will tell us why they oppose it," Mbadi said. "This country is not a dumping place."

"If you are injurious to the environment then you must pay for helping make good the harm that you have caused."

The government also aims to collect more taxes by prolonging the tax amnesty period by six months.

The cancellation of Kenya's Finance Bill 2024 in June followed widespread anti-tax protests. This forced President William Ruto to reassess the budget and explore alternative revenue sources.

During the handover ceremony last week, Treasury Secretary John Mbadi said he was keen on reinstating some provisions contained in the scrapped finance bill.’

Additional sources • AP

AfricaNews 19 August

https://www.africanews.com/2024/08/19/kenya-to-revive-scrapped-tax-plans-risking-unrest/

‘Kenya's Supreme Court has temporarily suspended a lower court's decision that declared the 2023 finance law unconstitutional. The suspension aims to maintain budget stability until the government's appeal is heard next month.

The finance law, presented annually, outlines the government's tax and revenue measures. A recent ruling by the Court of Appeal that last year's Finance Act was unconstitutional dealt a blow to President William Ruto's administration.

This comes after Ruto withdrew this year's finance bill in June following significant youth-led protests, marking one of the biggest challenges of his presidency.

President Ruto has faced the difficult task of balancing the needs of Kenya's struggling citizens with demands from international lenders like the IMF. He argues that tax increases are necessary to fund development programs and manage the country's debt.

The Supreme Court stated that maintaining stability in the budget process is in the public's best interest while the appeal is being considered. Hearings on the constitutionality of the 2023 finance law are scheduled for September 10 and 11.

The government, which has been using the 2023 law to collect taxes since the withdrawal of this year's bill, has not yet commented on the ruling.

The 2023 law faced legal challenges after violent protests led by opposition parties last year. The law includes measures such as doubling the value-added tax on fuel, introducing a housing tax, and raising the top personal income tax rate.’

AfricaNews 20 August

https://www.africanews.com/2024/08/20/supreme-court-temporarily-halts-ruling-nullifying-finance-act-2023/



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