Githae given tax tips to raise teachers’ pay

The government should quickly move to tax landlords, the informal sector and prostitutes to raise money to help meet the demands of the striking teachers and doctors, two MPs said on Friday.

Mr Martin Ogindo (Rangwe) and Mr Agostinho Neto (Ndhiwa) said Finance Minister Njeru Githae should “get creative” and tax capital gains made in the transactions at the Nairobi Stock Exchange.

They said they would amend the law to ensure that is done, because, it does not “hurt anyone”, but will enable Kenya to benefit from the market dynamics.

“We have not seen the best from the Ministry of Finance. It should ensure that there are savings from the budget to meet the demands of the workers,” Mr Ogindo said.

He said Mr Githae was wrong when he dismissed the workers. They said there were “fertile sectors” that the minister ought to tax to ensure that more revenues are collected.

“An inclusion into the tax net of the capital gains would generate a lot of revenue. The enforcement of the landlord taxes will raise a lot of money. Of course, the unpopular taxation of prostitutes will raise a lot of revenue, because we’ve seen they’re ready to pay taxes, they only lack a framework. We’ve seen the trade is there to stay, so we better make the best out of it,” Mr Ogindo said.

The two were addressing a press conference at Parliament buildings, Nairobi, where they also asked Education Minister Mutula Kilonzo to drop the sack threat on teachers.

Mr Neto, who was marking his second day in Parliament, said Mr Kilonzo should “emulate” the Minister for Higher Education, and ensure a workable deal is arrived at with the teachers.