“Cease imposing additional taxes on Kenyans!” -Punda amechoka
“Cease imposing additional taxes on Kenyans!” -Punda amechoka
Central Organization of Trade Union (COTU) secretary Francis Atwoli has voiced his reservation on a proposed bill aimed at increasing tax deductions for workers.
Speaking in Kakamega county, the combative unionist urged lawmakers to reconsider their stance on the proposed measure, dubbed the Unemployment Insurance Authority Bill.
The bill, proposed by Ikolomani lawmaker Bernard Shinali, seeks to, among others, impose taxes on workers and provide suspended employees with continued salary support.
Atwoli emphasized the financial strain many workers are currently facing due to high government taxes.
He argued that additional tax hikes would leave many informal laborers with meager earnings.
“I kindly request Shinali to reconsider any plans related to the employment levy, as it is significantly impacting people’s income. Our payslips are already heavily burdened, and we have very little left,” he expressed.
“At this stage, if we haven’t achieved economic stability as a nation, we should avoid adding further financial burdens on Kenyans. Kenya Kwanza is working on strategies to stimulate economic growth, but let’s not burden our citizens in the process.”
Francis Atwoli, secretary of the Central Organization of Trade Unions (COTU), has expressed reservations over a proposed plan to increase tax deductions for workers. Speaking in Kakamega County, the feisty unionist urged lawmakers to reconsider theirposition on the proposed Unemployment Insurance Authority Bill. The plan, introduced by Ikolomani member Bernard Shinali, proposes to impose taxeson workers and offer continuous wage assistance to suspended personnel, among other things.
Atwoli stressed the financial hardship that many workers are currently experiencing as a result of hefty government taxes.
He contended that further tax increases would leave many informal workers with minimal wages.
“I respectfully request that Shinali reconsider any plans regarding the employment levy, as it has a significant impact on people’s income.” “Our paystubs are already overburdened, and we have very little left,” he explained.”At this point, if Kenya has not achieved economic stability as a nation, we should avoid adding additional financial burdens on Kenyans.” Kenya Kwanza is developing economic growth ideas, but let us not burden our population in the process.”
Atwoli’s comments come as the government has recently implemented several VAT increases stated in the Finance Act 2023.
Notably, a contentious provision requires Kenyan formal-sector workers to contribute 3% of their monthly wages to the Housing Fund. The new tax package, which was approved by parliament, would double the gasoline tax to 16% . And impose a new housing fee. Which is expected to have a rippling effect in a country plagued by high inflation.
Kenyans would also have to pay higher deductions for the National Health Insurance Fund (NHIF) . As well as the National Social Security Fund (NSSF). Dr. Ruto, who took office in September 2022 following a highly contested election. Is attempting to replenish the government’s depleted coffers . And restore a heavily indebted economy left by his predecessor, Uhuru Kenyatta, who splurged on large infrastructure projects.
