Azimio la Umoja, led by Former Prime Minister Raila Odinga, still hopes to thwart President William Ruto's efforts to pass the Finance Bill 2023.
As the bill approaches the third and final reading in Parliament on Tuesday, June 20, the opposition leader unveiled plans to contest Ruto's proposal to double the value-added tax on petroleum products from eight to sixteen per cent.
Through legislators affiliated with Azimio, Raila, on Monday, June 19, tabled new proposals to scuttle some Finance Bill 2023 proposals despite the stiff opposition from Ruto diehards.
National Assembly minority leader, Opiyo Wandayi, revealed that Azimio had submitted amendments to the Finance Bill 2023, to stop Kenya Kwanza from doubling fuel VAT from 8 per cent to 16 per cent.
Addressing the media on Monday, June 19, Wandayi argued that doubling the VAT would cripple the economy, especially the transport sector, a contrary opinion to the one held by Kenya Kwanza loyalists who argued that it would spur the economy.
"We intend through the proposals brought forth to remove the increase in VAT and revert to the eight per cent VAT," Wandayi stated.
President Ruto had defended the increase, noting that the collected money will fund infrastructure projects in the coming years.
"The 8 per cent will give us Ksh50 billion to construct and maintain roads across the country," Ruto stated during a joint media interview at State House on Sunday, May 14.
Wandayi who also serves as the MP for Ugunja added that Azimio had submitted nine other amendments to the Finance Bill 2023 ahead of the third reading slated for Tuesday, June 20.
Azimio hopes to lobby the majority into considering its proposals before the bill is passed and assented into law. The opposition underlined that it was rushing against time to force Ruto from effecting the tax hikes.
"By the close of business on Friday, June 16, more than ten members from Azimio's side forwarded proposals to amend the bill. I know the number could be higher now," Wandayi revealed.
In addition to opposing the sixteen per cent fuel VAT, Azimio pledged to contest the proposition exempting aircraft importers from the 16 per cent Value Added Tax (VAT). Furthermore, they also pledged to contest the elimination of the 3.5% import declaration fee (IDF) and the proposed removal of the two percent Railway Development Levy (RDL).
In his proposal, Alego Usonga MP Samuel Atandi sought to amend that section of the bill to re-introduce VAT on chopper importation. Ruto had earlier defended the clause insisting that it would create employment opportunities for Kenyans in the aviation sector.
On the other hand, Embakasi East MP Babu Owino vowed to oppose the 1.5 per cent housing tax. Babu Owino insisted that the tax will worsen the unemployment rate in the country.
The government was forced to reduce the housing tax from three to 1.5 per cent but removed the Ksh2,500 cap. With this amendment, employees and employers are set to contribute a total of three per cent as they will both contribute 1.5 per cent.
Kuria Kimani, the National Assembly Finance and Planning Committee chairman, confirmed that he forwarded Azimio's amendments to the Treasury for consideration, offering the opposition some hope.
"So far, I know of nine letters that have been written to the clerk and the National Assembly speaker. The amendments have been done by several members of parliament and of course some of those amendments are similar to those in our report," Kimani Kuria stated.
"We have forwarded these amendments to Treasury for us to get the financial implications because remember the Finance Bill is a money bill," Kuria insisted.
