NAIROBI, Kenya, May 12 – The Federation of Kenya Employers (FKE) has waded into the Finance Bill 2023 debate calling for a review.
FKE President Jacqueline Mugo says the Bill in its current state is not good for Kenyans.
Mugo says the government has a right to broaden the tax base in the country but must be considerate to its citizens
“We are concerned about lack of consultation by the government before it increases its tax base,” she said.
She noted that if the Bill is implemented as it is, then it will be very difficult for ordinary Kenyans to survive in this country.
Addressing a press conference in Kisumu on Friday after attending an annual general meeting of FKE Western Kenya branch, Mugo says the government should concentrate on how to reduce the cost of business and ways of bringing down the cost of living.
“It is quite unfortunate that the cost of doing business in this country is going higher as the government plans to add more burden,” she said.
Mugo noted that the 6 percent increase on the housing levy, the increases in NSSF, and the proposals under NHIF have already compounded the situation before the Finance Bill 2023 comes in.
She says the Bill creates an administrative burden for taxpayers, especially those with multiple transactions.
“This Bill includes mandatory remittance of withholding tax, which must now happen within three days, which we believe is unrealistic and it is difficult for businesses to meet this,” she said.
Mugo says the Bill is unsustainable and will hurt business, with a negative impact on small businesses growth, development and sustainability.
She says the employers’ morale is likely to nose dive since they will be asked to relook at the treatment of certain employees benefits such as pension and medical insurance.
“This will force employers to review their financial strategies and also salary structures to ensure compliance with the new rules. This will demoralize the same staff we are trying to protect,” said Mugo.
Mugo says the government should shelve the Bill, come back to Kenyans for a meaningful conversation.
She says a review on the Bill is inevitable so as to relieve Kenyans from an imminent burden.
