MPs set to lose taxation battle

Written By:Catherine Achieng'a,    Posted: Tue, Jun 28, 2011

The Premier visited the Times Towers Monday to clear his tax bill prompting other legislators to follow suit State Officers including Members of Parliament may have little choice but to pay up tax arrears owed to the Kenya Revenue Authority. Monday's move by the Prime Minister Raila Odinga and Gachoka MP Mutava Musyimi to settle their tax arrears at the taxman's headquarters in Times Tower appears to have triggered legislators to follow suit. The announcement by KRA that it will be collecting backdated tax from legislators had initially seen the Parliamentary Service Commission call for negotiations as opposed to threats. The previous Constitution shielded constitutional office holders including Judges and MPs from paying taxes on their allowances. However Article 210 in the current constitution does not exempt any person from paying taxes. It is this particular clause that has been a subject of debate with a section of legislators opposed to it, insisting it should only take effect after the 2012 polls. The PSC was among the first to call for negotiations on the issue. However the wave has since changed with a majority of legislators saying they will comply with the law, coupled with Monday's move by Musyimi and Odinga. The Premier personally walked to the KRA offices, took to the queue and settled his debt amounting to 3.4 million shillings, dismissing any deal that would postpone the payment of taxes. Reports intimate that legislators are currently streaming in to Times Towers to pay their dues. As things stand its likely all constitutional office holders, Judges and MPs may have little choice but to comply with the law as the transitional clause remains silent on postponement of paying taxes until 2012 as argued by a section of MPs.