MPs have threatened to shoot down a plan to tax their allowances.Finance minister Amos Kimunya announced the proposal during the Budget presentation last Thursday. But even MPs allied to the Government have vowed to vote against the plan to make them pay taxes like other workers in the country.
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| Finance minister Amos Kimunya is facing a headache after some MPs on Wednesday said they would vote against a plan to tax their allowances which amount to about Sh600,000 per MP per month. Photo/FILE |
In remarks made during debate in Parliament on Wednesday and in interviews with the Nation, some of the MPs said Mr Kimunya’s proposal “was punitive” because they spend colossal amounts of their allowances on public activities in their constituencies.
Shifting attention
Some even accused the minister of shifting public attention from more important issues like inflation and the reconstruction of the country. Assistant ministers Peter Kenneth, Sospeter Ojaamong and Orwa Ojodeh accused Mr Kimunya of playing to the gallery by making the announcement. But the move was supported mainly by Cabinet ministers, some who said it was long overdue.
In making the suggestion, Mr Kimunya had observed that his earlier request to MPs to initiate the tax move in last year’s Budget had not been heeded. Already, the Government has published a Bill proposing to scrap the section of the National Assemblies Remuneration Act which protects MPs from paying taxes on their allowances, which amount to nearly Sh600,000 a month per lawmaker.
Mr Kimunya had also suggested that constitutional office holders, including the Attorney General, Public Service Commissioners, Electoral Commissioners, the Controller and Auditor General and judges be compelled to pay taxes on their allowances.
In Parliament on Wednesday, the MPs supporting the tax plan said it was time to start leading by example while those opposed to it accused Mr Kimunya of politicking and trying to drive a wedge between MPs and the public.
The 222 MPs each earn over Sh800,000 per month, out of which Sh200,000 is their basic salary for which they pay taxes. The rest of the money is exempted from tax. If the law were to be changed, each MP would pay at least Sh233,931 in taxes per month in Pay-As-You-Earn based on the minimum Sh800,000 package. Their combined tax would contribute at least Sh51.9 million a month or Sh802.8 million a year to the Treasury.
This amount is more than the Sh656.7 million they are asking for to refurbish the debating chamber, buy new cars, fund foreign trips and pay retirement benefits for former legislators among other expenses of the House.
The amount is also close to the Sh950 million allocated to the new Ministry of Fisheries Development during the Budget speech last week.
Among those supporting the tax measures were Livestock minister Mohammed Kuti, and Mr Johnstone Muthama (Kangundo, ODM-K). But Planning and National Development assistant minister Peter Kenneth accused Mr Kimunya of trying to play up emotions over the tax.
Others who oppose the move are Labour assistant minister Sospeter Ojaamong, Mr Charles Kilonzo (Yatta, ODM-K) and Dr Bonny Khalwale (Ikolomani, New Ford-K). Mr Muthama angered some of his colleagues when he raised the issue during debate on the Budget. “It is in bad faith that the ordinary Kenyans are paying taxes on their meagre income but we are not. I want to pay taxes like other Kenyans,” he declared in Parliament.
The remark did not go down well with Dr Khalwale, who rose on a point: “Is he in order to say he is ready to pay taxes when we all know that he received Sh40 million from the Goldenberg scandal?”
Mr Kilonzo, the Yatta MP said he would oppose the proposal when the minister brings it for debate. “MPs are like Robin Hood. Whatever we earn, we share with our constituents, so asking us to pay taxes will hurt instead of helping the public. The MPs supporting the taxation plans are the same ones who have cases in court such as the Goldenberg scandal,” said Mr Kilonzo.
But Mr Muthama demanded that Mr Kilonzo name names or stick to the debate on the Budget statement. In response, the Yatta MP said: “The fact that you were elected does not cleanse you from your evil deeds!”
Mr Muthama answered his colleague, the son of a former police commissioner, saying: “You may have been brought up on those funds!”
In his contribution, Mr Ojaamong said taxing MP’s allowances would not solve the country’s myriad problems. “Let the minister go out and look for funds from donors instead of turning to MPs, who are already overburdened supporting their constituents,” said Mr Ojaamong, also the Amagoro MP.
Mr Kenneth, a one time Finance assistant minister said: “I know of MPs who spend all their salaries on their constituents. Let the minister bring his proposal here so we can debate and vote on it.”
Interviewed outside Parliament, Agriculture minister William Ruto and his Forestry and Wildlife counterpart, Dr Noah Wekesa, asked MPs to set a good example to other Kenyans by backing the proposal.
Mr Ruto said it would be unfair for MPs to allocate money paid by other Kenyans while their allowances remained outside the tax bracket.
And Internal Security and Provincial Administration assistant minister Orwa Ojodeh said: “All I know is that Mr Kimunya is playing populist politics. He wants to set MPs on a war path with the rest of the society. Inasmuch as MPs pay the “pay-as-you-earn” tax of about Sh54,000, if the Finance minister wants us to pay more, so be it,” he said.
An assistant minister in the Prime Minister’s Office, Mr Alfred Khang’ati, claimed that “all MPs were against the motion”. “I don’t support it,” he said. “If you are not careful as an MP, then you will lose all your earnings to public activities. I used to be more organised with Sh52,000 as the head of Union of Civil Servants, but right now, I am struggling to manage.”
Makadara MP Dick Wathika said he would support the motion. President Kibaki and other key public officers are among those who will be affected if Mr Kimunya’s proposal sails through Parliament and is implemented.
The President earns Sh2 million a month which includes a taxed salary of Sh700,000 and allowances totalling Sh1.3 million. Of these, Sh600,000 is an extraneous duty allowance, Sh100,000 entertainment allowance and Sh100,000 constituency allowance — all of which are not taxed.
Reported by Bernard Namunane, Odhiambo Orlale, Lucas Barasa and Alphonce Shiundu |