FIA Advocates Equitable Wealth Taxation for Citizens

FIA Advocates Equitable Wealth Taxation for Citizens
Githii Mburu, KRA CG/COURTESY

NAIROBI, Kenya, Jan 20 – Members of the Fight Inequality Alliance (FIA) with the support of Oxfam in coalition with the East African Tax and Governance Network (EATGN) have presented a briefing themed ‘tax the rich to foster equitable taxation among Kenyan taxpayers.

FIA advocate for an end to struggles against structural inequalities as well as insights, alternatives and initiatives in the commitment to fight for justice and dignity in the society.

Despite the evident absence of dollar billionaires in Kenya, there are 1,890 individuals with a net worth of USD 5million or more, with wealth totaling 39.9 billion dollars including 130 individuals owning 50 million dollars or more with a combined wealth of USD 18.7 billion.

Speaking at the event, EATGN Regional Coordinator, Leonard Wanyama noted that a wealth tax of 2 percent on millionaires and 3 percent on those with wealth of around USD 50 million would increase education and health spending by 14 percent and 34.3 percent respectively.

Akin to the corruption menace, Wanyama pointed out that tax evasion and avoidance are major problems in the country and therefore urged parliament to take its work seriously by developing better tax laws which favor citizens and shareholders at large.

Further, he acknowledged that the situation is in dire need to reconfigure the state of the country so as to ensure wealth is fairly distributed and allocated in sectors such as education, health and agriculture among others.

“Those who have more get rewarded for they have special access to power and influence,” said Wanyama.

In addition, Wanyama stated that the Kenya Kwanza alliance should review the revenue collection system to address the growing wealth gap between the haves and the have nots.

He added that political capture by the wealthy individuals has made it almost impossible for women dominated sectors who receive the shorter end of the stick during tax incentives.

At the same time, FIA official Njoki Njehu noted that fighting inequality is possible, as she reminisced about the free primary education and health which was possible through good political will that not only enact and acknowledge policies, but also implement them.

“If the government can find me with my national identity card (ID) during the election period, then why can’t it find me in the distribution of resources and services?” posed Njehu.

She urged the citizens and the journalists to be vigilant in advocating for equity of resources and services in relation to public debt, revenue collection and human rights in the country.

FIA Kenya will culminate the Global Week of Action with the Usawa Festival on January 23, 2023 at the University of Nairobi, Graduation Square.

The festival aims at creating a safe space where one can experience, imagine, feel and look regardless of their socio-economic status.