After a discussion on the content of the Budget Policy Statement (BPS) for 2024/2025 Financial Year, Azimio coalition has warned that the Kenya Kwanza government will be implementing double taxation.
According to the Raila Odinga-led coalition, the government will be forced to tax every ordinary Kenyan Ksh27,000, a move Azimio has dubbed ‘the second wave of taxes’.
Further, the coalition indicated that the economic proposals, policies, and strategies in the Budget Policy Statement, were flawed and unachievable.
“If the BPS is anything to go by, Kenyans must be ready to tighten their belts because KK regime is coming after them in a second wave of taxes.
“To the ordinary Kenyans, the Mama mboga, Boda-Boda riders, and the people of Mjengo, this regime is coming again with a double taxation plan with increased taxes of approximately Ksh27,000 per adult Kenyan,” indicated Azimio.
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Azimio Explains Reason for the Warning
Explaining their findings, Azimio said that the Kenya Kwanza government was proposing advance taxation on goods and services supplied to government, and VAT on educational services.
“Which means an increase in school fees and tax on agricultural produce,” added Azimio.
Additionally, the statement noted that the Budget Policy Statement was high sounding, vague with promising titles but only intended to raise expenditures and spend what the country did not have.
“As a coalition, there are things we are deeply passionate and unrelenting about. To us, the people of Kenya must come first.
“We believe that Kenyans have been hurting for a prolonged period of time. This Budget Policy Statement is meant to prolong and worsen the suffering by Kenyans,” Azimio said.
Consequently, the statement noted that the move would kill the middle class, hurting millions of Kenyans.
“Despite the rhetoric, the eloquent words, flowery language, and the confusing figures, Kenya Kwanza regime remains badly exposed on all fronts. As they present their second Budget Policy Statement, it is clear that we are in a second phase of a reckless race to the bottom.
“One and a half years later, all indicators point to the fact that life is deteriorating not improving. The cost of life remains high as the cost of every basic item continues to go up,” the Raila-led team warned.
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Advice to Kenya Kwanza Govt
The coalition advised the government to moderate expenditure, reduce wastages and adopt a rights and zero-Based Budgeting approach.
In addition, the coalition indicated that that the country would do better when more funds are devolved to the counties in line with the Constitutional provisions.
Also, the statement asked that the government strengthens the Middle Class by extending and expanding social security protection to the people.
Other suggestions included creating an enabling environment for manufacturing to allow more investors into the country and provide jobs as well as empowering a broad-based private sector and enabling it to be the driver of economic growth in our country.
“Fellow Kenyans, there are strong indications that things will get worse. As a coalition, we, however, refuse to ask you to tighten your belts again. You have done enough. The ball is squarely in the court of the regime.
“They either act swiftly and lower the cost of living by reducing taxation, wastages, and wanton theft of public money or await the fate that has fallen other insensitive and incompetent regimes across the continent,” Azimio said.