The Parliamentary Service Commission has cleared all taxes owed by Members of Parliament, the Kenya Revenue Authority said yesterday. Commissioner-General Michael Waweru said the MPs' tax arrears going back to August 27, 2010 when the new constitution was promulgated, have been fully paid. “I don't think the issue of MPs is an issue anymore. We have received all the taxes that we wanted, that is no longer a pertinent issue,” Waweru told The Star.
Waweru did not reveal how much the PSC remitted on behalf of the MPs but in the past he has said tax compliance by the Members could net Sh600 million annually.
He implied that PSC as the employer was to be held liable for remitting of taxes owed by the MPs. “PAYE (pay as you earn) is a tax that is administered on agency. The tax is due from the employer as if he was the employee,” Waweru said. “Chapter Six of the Constitution requires everyone to pay their taxes.”
The revelation would seem to confirm a report carried by the Sunday Nation in August indicating that a deal had been struck between Parliament and Treasury for MPs' taxes past and future, until the next election, be cleared.
The report quoted Konoin MP Julius Kones saying that money would be found from the Contingency Fund and from some budgetary allocations that would have to be frozen to cater to the legislators. “As I'm telling you, the taxes have actually been paid. We have no problem with MPs,” Waweru told The Star.
This clears a potential hurdle for current lawmakers wishing to seek office in the next election as tax compliance has become a must for anyone applying for a public position. “Everyday, we are receiving requests to confirm tax compliance of applicants of various jobs in compliance with Chapter Six of the new constitution,” Waweru said.
Waweru, who is set to retire next March, said he expects KRA to hit the Sh1 trillion mark in tax collections in the next two to three years. He expressed hope there would be no political interference in the selection of his successor. Waweru and two of his commissioners, John Njiraini of Large Domestic Taxpayer Department and Wambui Namu of Customs, are expected to exit next year.
But Njiraini and Namu as well as Helen Bila and Alice Owuor, the other two commissioners, can apply for Waweru's post. “I would hope that there will be no political interference,” he said. “The board is going to do the recruitment. There will be psychometric tests for the shortlisted candidates then the Minister for Finance will be the final authority.”
The Commissioner-General said he would prefer that his successor comes from within the organisation. “I would really hope we get somebody from within. The authority is in the middle of a very rigorous reform programme,” Waweru said. “My last date here is March 3. Well before that, the new CG will have been known.”
Waweru joined KRA in 2003 after a long stint in the private sector where he rose to be CEO of Ernst and Young, a consulting, audit firm. After the expiry of his maximum two terms at the helm of KRA, President Kibaki extended his contract. Waweru said he is yet to decide on his next career move but ruled out an entry into politics.
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