Sunday, July 10, 2011

Anti-tax MPs threaten to send the House home

MPs are under pressure from the public and the Charles Nyachae-led Commission on Implementation of the Constitution to pay taxes on their salaries.


Photo/FILE MPs are under pressure from the public and the Charles Nyachae-led Commission on Implementation of the Constitution to pay taxes on their salaries.
By EMEKA-MAYAKA GEKARA gmayaka@ke.natiomedia.com And NJERI RUGENE nrugene @ke.natiomedia.com
Posted  Saturday, July 9 2011 at 22:30

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MPs angered by the demand for tax arrears on their salaries have threatened to force an early General Election if the decision is not revoked.
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They have declared that their intention to “punish” President Kibaki, Prime Minister Raila Odinga and Vice-President Kalonzo Musyoka by pushing them out of office for what they describe as “betrayal and dishonesty”.
The politicians are buoyed by the position of House Speaker Kenneth Marende, who has maintained that President Kibaki and Mr Odinga had, in the run-up to the referendum last year, assured members of the current Parliament they would not be taxed.
The 40 MPs who met last Thursday night in Mombasa to put final touches on their plan to fight the taxation bid accused the coalition leaders of “lying” to Parliament.
They maintained that their interpretation of the Constitution—articulated in Attorney-General Amos Wako’s opinion to Parliament in 2010—was that the 10th Parliament was exempt from taxation.
But Mr Odinga dismissed the commitment as a “gentleman’s agreement”, which cannot be superior to the Constitution.
“Once the new constituencies are in place, we will trigger fresh elections. Our opinion is that the principals have more to lose than MPs by going to the polls. More than 70 per cent of MPs are financially stable and don’t fear elections,” said Yatta MP Charles Kilonzo, who is among those spearheading the campaign.
He indicated they want the elections held by October. It is however not clear how it would be possible to hold elections by that time.
Although Parliament has enacted the relevant law, the Independent Electoral and Boundaries Commission is yet to be established.
Once established after a long and elaborate process which will include interviews, vetting and approval by Parliament, the electoral team has the first four months to complete review of constituencies boundaries started by the now defunct Ligale commission.
“The most annoying to MPs is the fact that the principals deliberately lied to the National Assembly,” Mr Kilonzo told Sunday Nation from Juba where he was attending the celebrations for the independence of South Sudan.
The MPs are under pressure from the public and the Charles Nyachae-led Commission on Implementation of the Constitution to pay taxes on their salaries.
Mr Nyachae says Article 210(3) of the Constitution was clear that all State officers must pay tax on their income.
“There are many State officers. It is not just specific on MPs. That provision is not among the suspended ones under the Sixth Schedule. It therefore means it became operational from the promulgation day,” he said.
Assistant minister Mwangi Kiunjuri yesterday accused the coalition leaders of failing to comply with Chapter 6 of the Constitution on leadership and integrity for misleading MPs that their pay would not be taxed.
The President gave the assurance following AG’s opinion in interpreting the new Constitution. Kenya Revenue Authority boss Michael Waweru and the Ministry of Finance also gave a similar assurance in letters addressed to House Speaker Kenneth Marende.
“It is rather unfortunate and disturbing that the PM would go public to deny he was part of the pact when he co-chaired that meeting with the President,” Mr Kiunjuri said.
He declared that he would support any move by backbenchers to censure the leaders.
“They owe Parliament an apology and a proper interpretation of the law. The Chief Justice should tell Kenyans the proper position to stop this mob justice against MPs.”
In addition to the tax arrears, the MPs argue that they will face penalties for late payment.

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Anti-tax MPs threaten to send the House home

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MPs are under pressure from the public and the Charles Nyachae-led Commission on Implementation of the Constitution to pay taxes on their salaries.
Photo/FILE MPs are under pressure from the public and the Charles Nyachae-led Commission on Implementation of the Constitution to pay taxes on their salaries.
By EMEKA-MAYAKA GEKARA gmayaka@ke.natiomedia.com And NJERI RUGENE nrugene @ke.natiomedia.com
Posted  Saturday, July 9 2011 at 22:30

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“The taxman has another card under the table, which is penalty for late remittance. Once you pay, you are confirming default and the penalty is automatic,” argued Mr Kilonzo.

Mr Kiunjuri said if MPs are to obey the current directive to pay taxes, modalities of doing so will have to be worked out between the KRA and Parliament “because not every MP has a million in his account at any time and for public show-off”.

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