Churches issue tax threat over MPs pay

Kenya clergy have threatened to mobilise their followers to stop paying taxes to the government if MPs get a salary increment.

The religious leaders under the Ufungamano Joint Forum of Religious Organisations said Tuesday they had devised a way which will see all taxpayers refuse to pay taxes if MPs manage to increase their perks.

“Ufungamano JFRO will be forced to join other Kenyans in refusing to pay taxes and taking any other measures should Parliament and the government proceed to implement the salary hikes,” read the statement by the religious leaders, signed by Catholic Church head John Cardinal Njue and Rashmin Chitnis from the Hindu Council of Kenya.

MPs have drawn the ire of Kenyans by adopting the recommendations of a tribunal chaired by former Appellate judge Akilano Akiwumi that seeks to raise their monthly salaries from the current Sh851,000 to Sh1.2 billion to cushion them against taxation.

But Finance minister Uhuru Kenyatta has declined to table the bills whose adoption would legalise the new regime of MPs’ salaries and allowances.

The MPs, have in turn, threatened to shoot down the Finance Bill, denying the government money to fund its operations.

The proposed constitution bars MPs from reviewing their own salaries and creates a body that will be charged with the task.

Weak economy

The religious leaders argue that the economy is too weak to sustain the new salary regime and accused MPs of greed.

“There is an urgent need to review and reduce the Kenyan MPs’ salaries and allowances considering Kenya’s economy and the average salary levels,” said the religious leaders.

They charged that Kenyan MPs were the highest paid in Africa yet among the least productive.

The religious leaders also warned that with the proposed constitution increasing the number of seats in Parliament to 349, it would be impossible for the country’s economy to meet their salaries.

“It is an honour for the MP to serve his country. The National Assembly is not a place to go and make money,” the statement read.

They, however, declined to explain how they will enforce their threat to refuse to pay taxes as section 24 of the Kenya Revenue Authority (KRA) act makes it an offence for one to withhold taxes unless one enjoys special exemption.

“We will come to that when we reach there but we have a way out of that,” said Mr Chitnis.

The relevant KRA Act on taxation reads: 24. (1) Any person required to deduct or collect any revenue pursuant to the provisions of any of the written laws specified in Part II the First Schedule shall collect or deduct such revenue and remit it to the Authority:

(2) If any person fails to remit any revenue in accordance with subsection (1) on or before the due date, a penalty of twenty percent of the amount due shall become due and payable, and thereafter an interest of two per centum per month or part thereof until the amounts are remitted in full.