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| PM Raila Odinga queues at KRA a move that saw him part with 3.4 million shillings in arrears backdated to August last year. |
Prime Minister Raila Odinga Monday joined other Kenyans and paid his tax balances to the Kenya Revenue Authority.
The PM who filed his tax returns at noon today said he acted in compliance with the new constitution that requires all Kenyans, including members of parliament, to pay taxes.
"I have paid because that is the law. The constitution does not exempt anybody, let alone Members of parliament, from paying taxes'', he said.
Addressing the press in his office minutes later, the PM revealed that he had paid tax arrears amounting to 3,392,344 Kenya shillings.
He quoted Article 210 states that "No law may exclude or authorize the exclusion of a state officer from payment of tax by reason of the office held by state officer; or the nature of work of the state officer.
Mr. Odinga noted that what he had paid was based on calculations by the accounts department in the Office of the Prime Minister and Parliament, and it included salary, and allowances.
He was categorical that all Kenyans must pay tax regardless of their social standing so that the burden of taxation is shared by all.
"All Kenyans - including some of the lowest paid house helps,labourers ,factory workers, even vendors, must pay tax'', said the PM.
The Premier explained that the new constitution is a source of hope for Kenyans and must be faithfully implemented in letter and spirit to enable the country combat corruption, end impunity and protect people's rights.
At the same time, he urged elected leaders to provide leadership on this matter both in word and action.
Meanwhile, Raila pointed out that there are still loopholes being used by unscrupulous people to avoid paying of taxes.
Meanwhile, Raila pointed out that there are still loopholes being used by unscrupulous people to avoid paying of taxes.
He observed that if all taxes are faithfully paid the country was at the threshold of exceeding the current budget of 1trillion to probably 3 trillion Kenya shillings.
In this regard, he appealed to the Kenya Revenue Authority to move fast and close all gaps used to evade tax payment.
However, he cautioned that pursuit of taxes must not be an excuse for harassment or extortion by KRA officials.
"Just like tax evasion, extortion and harassment are crimes'', he said.
Gachoka MP, Mutava Musyimi has also paid Sh1.9m as Kenya Revenue Authority piles pressure on MPs to pay up.
Chief Justice Willy Mutunga who is not affected by the demand for back taxes by the KRA has asked the taxman to compute the amounts owed by judges.
Like MPs, judges have also been anxious over the taxman's announcement this week that they are expected to pay tax on their allowances backdated to August 27 last year, the date of the Constitution's promulgation.
The question of tax compliance among state offices has generated debate with only 2 of the 222 MP's known to have been paying taxes on their allowances. MP's have however in recent days been forced to soften their stance owing to public pressure.
State officers including constitutional office holders who previously enjoyed tax free allowances are now included as tax payers as the government moves to broaden its tax bracket.
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