University students have declared their support their for the new taxation plans, which have received opposition by different sectors of the economy.
The Kenya Universities Students Association said the 2023 Finance Bill, will help greatly in addressing accommodation challenges for the students besides creating jobs for the youths.
The President of the students association Anthony Manyara said the controversial housing levy will solve accommodation challenges in institutions of higher learning.
The association boss said that as students association they will write a proposal to the President on how the student accommodation can be incorporated into the affordable housing plan.
Manyara added that the housing levy proposal has been successful in other countries.
Manyara stated that it is not blind loyalty to support the proposal adding that MPs have mortgage and it is high time they support other Kenyans to have their own houses.
He called on Kenyans to support the plan, and hold the President to account shall the program be mismanaged.
Samuel Oloo,
The chair for Mutarakwa Harmony Cooperative, Oloo Samwel, said the housing levy gives workers in housing and construction industry a lifeline. They will get jobs once the construction of these houses begins.
Mutarakwa is a cooperative bringing together youth in the construction industry.
Oloo and Manyara made the remarks during public hearings on the Finance Bill, 2023, which entered day seven on Sunday.
The sittings by National Assembly’s Departmental Committee on Finance were held at Hilton Garden Inn, Mombasa Road.
Committee chair Kuria Kimani noted that accommodation was one of areas students wanted addressed.
Kimani said his committee has received submissions from stakeholders who want the Bill passed as well as those who want it to be amended first.
Parliament is receiving very many petitions from members of the public who are opposing the new taxation plan.
Proposals that have attracted the highest number of opposition include raising VAT on petroleum from eight to 16 per cent, proposed housing levy pegged at three per cent of basic salary as well as increase of income tax to 35 per cent for those earning 500,000 and above.
Workers’ unions have decried implementation of the planned tax regimes and urged Parliament to reject proposed amendments in the Finance Bill, 2023.
The Kenya Universities Staff Union secretary general Charles Mukhwaya said once passed, the Bill will see total deductions from employees’ monthly earnings shoot up to 52 per cent.
Mukhwaya said already as is, the statutory deductions are overburdening workers.
These include NHIF, NSSF, PAYE and Housing Fund levy among others.
Opposition coalition Azimio has termed the Finance Bill 2023 proposed by the Ruto administration as a piece of punishment for Kenyans.
Azimio has accused Kenya Kwanza administration of turning against its promises to the common Kenyans of lessening the burdens of living by proposing tax increments.
The Opposition has promised to mobilise its MPs to shoot down the Bill, but expressed fears that the government could ‘buy’ opposition MPs to pass the Bill.
Kenya Kwanza government has vowed to go ahead with the enactment of the Finance Bill, 2023 as is despite criticism from several quarters.
Ruto has defended the Bill saying it aims to expand the tax base while factoring in important aspects.
The Bill will expand this year’s budget to Sh2.8 trillion up from the current Sh2 trillion passed in the 2021/22 financial year.
