MPs in fresh plot to fight off taxes

More than 40 MPs met to put final touches on their plot to fight off the constitutional provision that seeks to see every Kenyan pay taxes on their income.

The MPs, who met on Thursday, want the provision to tax their hefty perks suspended.

Sources at the meeting disclosed that MPs resolved to frustrate the budget allocations to some key ministries such as the Office of the President, Prime Minister and Vice-President offices when Finance minister Uhuru Kenyatta initiates debate on the same when Parliament resumes on July 19.

It was also agreed that the push for an early election, most likely in September, be adopted as an option for their case.
Besides, the MPs resolved to push for the immediate implementation of the Akiwumi report that recommends that their salaries be raised to Sh1.1 million per month and then have some of their perks taxed.

The MPs met as Vice-President Kalonzo Musyoka, who is also a target in the lawmakers’ plan to punish top government leaders who have paid tax, said that the legislators should not be pushed into a corner over the taxation of their perks.
The VP said the MPs were ready to submit tax arrears to the taxman, but he did not elaborate how they would relax their resolve not to pay tax until after the next elections.

But during the night meeting at Mombasa Continental Resort, the lawmakers vowed to punish top leaders in government for being dishonest to Parliament and the public, by duping them that the non-payment of tax on their perks was guaranteed even with the coming into force of the new Constitution.

They maintained that their position that the current Parliament was exempted from the new taxation measures was the “correct position”.

They vowed to stand by that position, which Prime Minister Raila Odinga has dismissed as a “gentleman’s agreement”, which is not superior to the Constitution.

The PM, the VP and some MPs have gone ahead to clear their tax arrears, to the chagrin of the MPs who feel betrayed.
The VP, keen to mollify the MPs, spoke earlier at a meeting for lawmakers about the East African Community treaty.

Mr Musyoka said that the Parliamentary Service Commission, which looks at the MPs’ welfare, and the Kenya Revenue Authority must first work out the modalities of payment.

“MPs recognise that payment of taxes is a constitutional requirement but they should not be pushed to the extent that they have to defend themselves before their constituents,” he said.