President William Ruto's chief economic advisor David Ndii on Sunday May 7, told off Kenyans opposing the Finance Bill 2023.
Ndii defended the Finance Bill 2023, adding that it was drafted with expert analysis and consideration of external factors such as the International Monetary Fund (IMF).
“People with issues with Finance Bill, sit down, write an alternative budget that cushions external shocks without IMF, brings down deficit with no tax measures. And do the numbers,” Ndii stated.
Dr Ndii was responding to concerns raised after after Treasury Cabinet Secretary Prof Njuguna Ndung'u, presented the Finance Bill 2023, which imposed some new taxes with relief to specific goods.
For instance, the 3% housing levy fund was criticized by lobby groups who questioned the criteria for selecting beneficiaries of the same housing project.
Activists argued that making the housing levy mandatory overburdens the workers who were already overburdened with new NSSF deductions, NHIF rates, and pay as you earn (PAYE).
The new Bill proposes introduction of a higher personal income tax rate of 35% on the income of individuals who earn Ksh500,000 per month and above.
If the Bill is passed, there will be introduction of tax on digital assets – a new Digital Asset Tax is proposed at the rate of 3% and it will be applicable to the income derived from the transfer or exchange of digital assets.
The new Bill also seeks to reintroduce exemption from VAT on exported services.
At the same time, the Bill proposes to delete the 8% VAT applicable to liquified petroleum gas (LPG) and make LPG exempt from VAT.
CS Njuguna was seeking an amendment to Section 43 of the Value Added Tax Act, 2013, to exempt LPG gas from taxation.
President William Ruto had earlier promised to lower the cost of LPG in the country. Therefore, passing of the Bill could help the president in fulfilling his pledge of lowering the cost of cooking gas.
Meanwhile, the Departmental Committee on Finance and National Planning invited Kenyans submit written views on the Finance Bill, 2023 on or before 20th May 2023.
"In compliance with article 118 (i) b of the constitution and standing orders 127 (3), the Departmental Committee on Finance and National Planning hereby invites the public and stakeholders to submit written memoranda on the Finance Bill 2023.
The memoranda may be addressed to the clerk of the National Assembly P.o Box 41842-00100 Nairobi; hand-delivered to the office of the clerk, main Parliament buildings Nairobi; or emailed to clerk.nationalassembly@parliament.go.ke to be received on or before Saturday, May 20, 2023, at 5.00pm," read part of a notice published in local dailies.
This was not the first time Ndii was defending government. On April 10, 2023 the economist confirmed the government’s commitment in paying public debts.
Ndii assured the country and the international community that despite government’s delay in payment of civil service salaries, it would will pay all its public debts.
"We are not insolvent. We can finance repayments. It is a significant sacrifice but we are actually able to pay," Ndii told Citizen TV during an interview.
The Chairman of the National Assembly Finance and National Planning Committee Kuria Kimani admitted that the country is in debt distress, adding that the situation was under control.
