Mutula advices for CJ decision on tax

Written By:Glena Nyamwaya,    Posted: Thu, Jun 23, 2011

Justice Minister Mutula Kilonzo is looking up to the new CJ to solve the taxation dilemma

Mutula Thursday said MPs are liable to pay taxes adding that the final decision lies with the government.

Mutula however defended House Speaker Kenneth Marende's stand on the debate on taxation of MPs, saying he is entitled to his own opinion on the matter and this should be respected.

He added that according to the transitional clause in the new law, powers and privileges were to be enforced.

Mutula termed the Kenya Revenue Authority's threat to auction MPs assets in order to recover tax backdated to September 2010 as mischievous blaming the taxman for reneging on a deal that was struck to exclude the current Parliament from taxation.

The Justice minister noted that KRA gave its undertakings to Parliament, further admitting that though MPs are taxable, the taman's timing was questionable.

According to him, KRA promised to waive taxes for legislators sitting in the current Parliament during a meeting held between the Attorney General, KRA, Treasury and MPs, before the August 2010 referendum.

He said paying taxes should not be done in a manner likely to irritate the legislators, or punish them; neither should it arouse public distrust towards leaders.

Mutula however said that he is willing to pay taxes because KRA is entitled to claim taxes from all MPs.

The minister now wants officials from the KRA and the MPs to seek the new Chief Justice Dr. Willy Mutunga before any further decisions are made on the matter.

"A new dawn always comes with issues," Mutula said.

He added that such incidents occur the world over and therefore the nation should handle the matter with calm.

COTU defends MPs

Meanwhile the Central Organization for Trade Unions (COTU) on Thursday termed the on-going debate as a deliberate move to scuttle the implementation of the Constitution by anti-reformist forces.

Through a statement released to the press COTU said that though it shares the view that MPs like any other Kenyan should pay tax, they are opposed to the manner in which the matter is being handled through threats and intimidation to legislators.

COTU further feels that since Parliament is key in the implementation of the Constitution the intimidation, threats and demonization MPs being put through over payment of tax will not augur well if indeed Kenyans are keen on the implementation of the Constitution.

According to the statement "The House supported the Constitution on the understanding that issues of taxation will not affect the sitting MPs and they were assured by this government and for the government to renege  on this promise and use such key institutions like KRA to issue ultimatums to MP, it borders on hypocrisy and there could  be a better way to handle the matter."

The union body demands that the Offices of President and Prime Minister together with the Ministry of Justice and Constitutional Affairs, Ministry of Finance under which KRA falls, the Attorney General, Speaker of the House on behalf of MPs and KRA officials jointly agree to set up an Inter-Ministerial Committee to interrogate the matter and come up with a way forward other than the use of threats.

COTU is also urging KRA and Kenyans to debate this matter with decorum since the people in contention are honourably elected representatives of the electorate who ought to play a pivotal role in implementation.  

The body also terms as suspect the decision by KRA to ask for the taxes nearly a year since the promulgation of the new Constitution.

Gitari differs on debate

Mutulas remarks came amidst Kirinyaga Central MP Joseph Gitari's revealation that he's ready to pay taxes as demanded by KRA.

The newly elected MP said that he sees no problem with MPs paying taxes just like any other Kenyan.

However he said that AG Amos Wako should announce whether schedule 5 of the constitution was in force guiding MPs to pay their taxes from August next year.

The PNU MP said that it is obvious Kenyans want their leaders to start paying their taxes and legislators should read the signs and accept the reality that everybody is now supposed to pay taxes.

Gitari further pointed that the matter should be debated soberly by all stake holders and advised his colleague to prepare on how they will pay their taxes instead of engaging in heated debates with the taxman.

 KRA has written to clerk of national assembly Peter Gichobi demanding taxes deduction from MPs salaries.

The MPs are required to pay 2.9 million shilling each backdated to August last year.