Members of Parliament were on Wednesday, June 14 engaged in a heated debate when the proposed Finance Bill, 2023 was tabled in Parliament.
The lawmakers seemed to agree on some sections of the Bill but strongly disagreed on the housing levy which gained prominence on the floor of the house.
National Assembly Finance and Planning Committee Chairperson and Molo MP Kuria Kimani supported the Bill saying that with the 1.5 per cent reduction in the housing levy, low-income earners will be able to contribute fairly.
"The limit that was capping the contribution to Sh2500 has been removed because this would have been discriminative against those earning less," said Kuria.
Taking to the floor, Kisii MP Aburi Donya criticised his remarks saying that the government should use the land they want to give investors to revive production in the country and not force Kenyans to build houses.
"If the government is looking for money, let them make use of our land and revive dead factories. That is how you create employment and utilize the land. If one household has several members who are employed, how many houses will that household have?" she posed.
Migori Woman Representative Fatuma Mohammed hit out at Kenya Kwanza over the introduction of the housing levy, claiming a house awaits her in heaven and she is not interested in earthly possessions.
"Kenyans are not interested in the 1.5 per cent housing levy; they want food on their tables. Our children are going hungry; we don't need houses. There's a golden house waiting for me in heaven; I don't need one from Kenya Kwanza," she said.
On his part, Nyali MP Mohammed Ali accused his colleagues of being selfish saying: "Let us think about mwananchi, we must sacrifice in order to save Kenyans. Today you oppose this bill because you want popularity politics," he said.
According to Ali, the Bill provides employment and opens doors to foreign investors who will boost the country's economy.
However, Kitui Central MP Makali Mulu disagreed with the Nyali lawmaker saying that the changes made on the levy raise more concerns than before.
According to Mulu, by making the housing levy a tax, the money being collected cannot be claimed therefore it is no longer beneficial to Kenyans.
Proposed Amendments
Some amendments have already been made to sections of the proposed Finance Bill, even as the debate continues.
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The proposed housing levy, first capped at 3 per cent has been brought down to 1.5 per cent, and will now be a tax, rather than a contribution.
The proposed Pay as You Earn (PAYE) for employees earning Sh500,000 and Sh800,000 has been reduced to 32.5 per cent, up from 35 per cent.
Value Added Tax (VAT) on goods has been retained at 16 per cent, while VAT on gaming and betting services has been reduced to 12.5 per cent, up from 20 per cent.
Proposed taxes on digital content creators have gone down to 5 per cent, from 15 per cent.
On Thursday, June 15, Kenya will be glued to television screens as Treasury Cabinet Secretary Njuguna Ndung'u reads his first budget for the Financial Year 2023/24.