Written by Carolyn Wamalwa and Isura Christopher 2012-07-30 13:24:00 Read 633 Times

Yatta MP Charles Kilonzo, Adan Duale of Dujis and Fred Kapondi of Mt. Elgon who are against the introduction of the controversial VAT BIll 2012. They want it removed. [PHOTO | Carolyn Wamalwa | West Fm]

A section of Members of parliament have today (Monday) come out strongly against the introduction of the controversial VAT Bill 2012 to the house for debate and enactment; citing disparities in some provisions, which they say could lead to civil unrest once the document is adopted.

Yatta MP Charles Kilonzo disclosed that he has credible information implicating foreign bodies, the likes of the International Monetary Fund- IMF and the World Bank as architects behind the proposals on taxation in the Bill, as a way to have treasury amass more revenue from Kenyans to be able to clear the debt in loans that the government of Kenya owes them.

MPs Adan Duale and Fred Kapondi too voiced their concerns arguing that the Bill will give undue advantage to Kenya against other African countries in terms of foreign investments and further weakening Kenya’s economy, since there will be hemorrhage of foreign investors, on grounds that the Bill proposes to increase a VAT of 16 per cent touches on capital investments.

The MPs demanded that the Ministers in charge withdraw the Bill to aid consultations and revision on crucial issues before it is enacted, failure to which they threatened to introduce a censure motion against the Minister of Finance and his counterpart from the planning ministry thereof.

They added that the Bill seeks to undermine gains that have been realized by government, the results of which will be felt by the common mwananchi who will experience the ripple effects and will be forced to dig deeper into their pockets to afford life essential commodities including maize, milk, sanitary towels, mosquito nets, medicaments, farm inputs, as well as the collapse of key sectors of tourism and capital investments.

Kilonzo hinted that if push comes to shove, they will be forced to seek the speaker of the national assembly’s intervention, to advise the president to reject the Bill.

They termed the intent to increase the VAT to 16 percent ill advised, and sought to have the ministers concerned seek expatriate advice and consult with stakeholders to come up with an accommodative document before tabling it to parliament.

They pointed out as unnecessary to cushion certain sectors like the oil sector, which the Bill exempts from certain provisions, instead of considering commodities which are frequently used by low income earners such as food stuffs and fertilizer to be exempted from the proposed 16 percent.

“The Bill would be law in the next 3 months, we are asking the ministers concerned to withdraw, correct and table an appropriate document… let tax issues to be dealt with tax experts. We do not want to kill a good idea (VAT Bill),” said Kilonzo.

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