Sunday, July 3, 2011

Rarieda MP Gumbo vows not to pay taxes

Written By:Lillian Mwendo ,    Posted: Fri, Jul 01, 2011

Gumbo claims that in interpreting the law, article 210 section 1 of the constitution has been ignored and that he is not ready to pay any tax until that clause is addressed.
Rarieda Member or Parliament Nicholas Gumbo has vowed not pay tax arrears as demanded by the Kenya Revenue Authority.
Gumbo said he will not pay tax until a law is enacted to compel legislators to do so.
He accused the Commission for the Implementation of the Constitution chairman Charles Nyachae and Commissioner for Domestic Taxes John Njiraini of inciting the public against the legislators by claiming that they are tax evaders.
He said Nyachae and Njiraini were deliberately misleading the public by misinterpreting section 210 of the constitution which states that no tax may be imposed on anyone except as provided by legislation..
Speaking at Parliament Friday, the Rarieda legislator claimed that some of the civil society organizations were tax evaders saying they have no moral authority to demonize the law makers.
The Legislator accused the Kenya Revenue Authority and the Commission on the Implementation of the Constitution of selective interpretation of the constitution to pressurize Members of Parliament into paying taxes.
Gumbo said that it is the responsibility of parliament to ensure that all avenues for tax evasion are completely sealed.
“Selective reading of the law make the parliamentarians appear arrogant and the question I am asking is, where the legislation required by constitution change tax obligations is”, Gumbo said.
He noted that MPs should be given more time to pay taxes arguing that the tax bill is huge amount that requires more sources.
“MPs are not tax evaders nor tax cheats”, Gumbo said
His south Mugirango counterpart Manson Nyamweya on the other hand says he is willing to start paying his dues starting this Month but for the arrears accumulating from last year, he awaits a word from the Kenya revenue authority.
So far a few MPs have paid their tax arrears to KRA among them the president, Prime Minister and vice president.
Other leaders who have so far cleared their arrears include Assistant Minister Margaret Wanjiru and MPs Gideon Mbuvi (Makadara) and Mutava Musyimi (Gachoka).
They joined Peter Kenneth (Gatanga) and Kangundo's Johnson Muthama who have been remitting their taxes since 2008.
On Thursday meanwhile, Deputy Prime Minister and Minister for Finance Uhuru Kenyatta hit out at leaders whom he accused of politicising the constitutional requirement for all Kenyans including MPs to pay taxes.
Kenyatta said the new Constitution had caught the lawmakers' mid-stream.
"It is also clear that our new constitution has caught us mid-stream and we have to go through a transitional process. This applies as much to Members of Parliament as it does to the rest of Kenyans. It is morally wrong for those who have the ability to comply to make a public spectacle and paint negatively other Members of Parliament who may be willing to comply but are unable to immediately do so in a lumpsum payment. (Tax arrears are estimated at 2Million)."
The deputy Prime Minister said the payment of taxes was a constitutional, moral and developmental issue that goes beyond any individual's personal position and urged Kenyans not to politicise the issue.
"Tax Compliance is a constitutional, moral and developmental issue that goes beyond any one individual's personal position, notwithstanding the fact that some may want to make a public declaration of their paying. Millions of Kenyans from all walks of life quietly pay their taxes regularly and are compliant as it is an obligation for all Kenyans to do so. There is nothing special about any one category of Kenyans fulfilling their civic duties under the law."
Kenyatta said the constitution is also very clear on the taxation requirements that have been placed on all citizens including himself.

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