Treasury Cabinet Secretary nominee and former Orange Democratic Movement (ODM) Chairperson John Mbadi has hinted at bringing back to Parliament provisions that were in the withdrawn controversial Finance Bill 2024 if approved.
Speaking while appearing before the National Assembly Vetting committee, Mbadi stated that the Finance Bill used to be passed on September 30th when the country is three months into the financial year.
Mbadi said that the Finance Bill is an omnibus amendment bill which amends six tax elements which include the Imports duty, income tax, Value added tax, exercise duty, tax procedures act, fees and levies.
The CS nominee said that if appointed, the parliament should help him bring these legislations directly touching on these specific statues that brings economic growth to the country.
“These are specific legislations. This House, if I’m approved, should help me to bring these legislations directly, touching on these specific statues. We don’t have to have a Finance Bill, but I’ll seek guidance from the Attorney General,” said Mbadi.
“The good provisions which have been lost by this bill which are not contentious, and there are many, which can still help this country grow the economy, we can bring them a specific amendment to those acts with proper public participation.”
John Mbadi Explains Why Kenyans Rejected Finance Bill
Mbadi added that that one of the reasons that led to the rejection of the Finance Bill is that most of the clauses were not explained properly to Kenyans and that everybody believed the bill should be defeated.
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He added that the public felt there was no proper participation, which they had but Kenyans felt that they were not listened to.
“There was this tax on motor vehicle, no one explained why it was necessary. Some of the people that the government, National treasury and parliament sent out did not explain the Bill well,” he said.
“They even made a mess of the explanation stating that this is to increase and enlarge the tax base yet every one of us who own moto vehicles pay taxes. So, communication is key.”
When asked why he voted ‘no’ on the Finance Bill and now praising it, Mbadi stated that he had to listen to the people who were saying Reject the bill.
“The bad provisions in the bill made the good ones look bad and the government must rebuild the trust from Kenyans,” he stated.
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The nominee also stated that his first priority if selected as the CS will be debt accountability.
“If Kenyans owe people money, why can’t they know who they owe, how much and what is the level of interest for each loan. We have to make a debt register document which should be published every year,” he said.
Mbadi likewise explained that he intends to expand Kenya’s tax base and revenue mobilisation in the aftermath of the withdrawal of Finance Bill 2024, which has left a huge gap in Kenya’s operating budget for the fiscal year.
“The focus has been that we should be increasing tax rates and coming up with new taxes, but I don’t think that is the solution. The solution to revenue mobilisation should be targeting the tax collector, KRA,” he said.
“The taxman is like a cow that we milk without feeding. We have a provision that two percent of our revenue should go towards building capacity of KRA, but we don’t do it.”
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