Wednesday, July 6, 2011

MPs threaten Kibaki and Raila over taxes


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MPs at the Mombasa Continental Resort on July 6, 2011 where they are attending a workshop on the draft national population policy.
Photo/LABAN WALLOGA/NATION MPs at the Mombasa Continental Resort on July 6, 2011 where they are attending a workshop on the draft national population policy.
By NJERI RUGENE nrugene@ke.nationmedia.com AND PETER LEFTIE pmutibo@ke.nationmedia.com
Posted  Wednesday, July 6 2011 at 22:30
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MPs plan to strip President Kibaki, Prime Minister Raila Odinga and Vice President Kalonzo Musyoka off their hefty retirements perks in protest against a law compelling them to pay taxes.
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They also vowed to campaign for cancellation of allowances paid to spouses of Mr Odinga and Mr Musyoka.
They want to punish the two leaders for complying with a directive by the Kenya Revenue Authority that all MPs pay full taxes on salaries and allowances backdated to last September.
The MPs also plan to frustrate passage of laws for implementation of the Constitution; and shoot down the Finance Bill when the House resumes in two weeks time.
The MPs, who are at the Mombasa Continental Resort for a workshop on the draft national population policy, were also seeking to placate public anger by passing a law that will exempt those who earn Sh30,000 a month and below from paying taxes.
Saboti MP Eugene Wamalwa and his Uriri counterpart Cyprian Ojwang accused President KibakiMr Musyoka and Mr Odinga of “inciting the public against the MPs” by paying their tax arrears.
Deal with hypocrisy
Mt Elgon MP Fred Kapondi said: “We are going to deal with this hypocrisy and double standards exposed by these leaders whose spouses earn more than MPs in allowances which are not taxed.”
Speaker Kenneth Marende was at hand to support the MPs hardline position. He maintained that MPs had been assured by the government that they would not pay increased taxes for the remainder of the current term.
In a statement issued in Mombasa, Mr Marende said that MPs were ready to pay full tax on their income if taxation laws were amended.
“Allow me to reiterate the fact that both the Executive and Kenya Revenue Authority wrote to the Kenya National Assembly before the Constitution was passed stating the position with respect to taxation as it would apply to Members of the 10th Parliament,” he said.
The MPs, who have only been paying tax on their basic salary which stand at Sh200,000 per month, are under pressure to pay levies on their hefty allowances which make up most of the Sh800,000 earnings.
The MPs threatened to paralyse government operations by rejecting crucial Bills.
To begin with, the MPs plan to shoot down the Finance Bill when it is tabled in Parliament by Finance Minister Uhuru Kenyatta.
Mr Kapondi and Luka Kigen (Rongai) and Joshua Kutuny (Cherangany) warned that Parliamentarians would shoot down the Bill that gives the government authority to spend.
“Uhuru will not find it easy. Despite all the threats and tough talk. He will have to work hard to convince MPs to pass the budget,” said Mr Kutuny.
“This issue has united us more than ever before. We are going back to Parliament an infuriated group,” said Mr Kigen.
Mr Kapondi warned that the government “will be in for a rude shock. It is a false victory for them if they are already celebrating,” he warned, saying MPs had resolved to reject the bill to show their anger at the taxman’s move.
They also plan to reject several Bills expected in the House to implement the new constitution.
However they might be shooting themselves in the foot as Parliament failure to pass laws mandated by the new constitution opens the door for dissolution of Parliament.
Deputy Speaker Farah Maalim and Regional Development Minister Fred Gumo termed as insensitive the decision to tax MPs’ salaries and allowances at this point.

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