Deputy President William Ruto has asked Members of Parliament in his camp to reject President Uhuru Kenyatta’s legacy budget that was recently presented by Treasury CS Ukur Yatani.
DP Ruto was addressing at a roadside rally in Karuri, Banana Town, Kiambu County, after attending a church service at ACK St Peter’s Muongoiya Church in Kiambaa Constituency.
He said that the Sh3.31 trillion 2022/23 Budget Policy Statement was not people-friendly and merely sought to raise the cost of living.
If the MPS refuse to change the budget to accommodate his input, the deputy president vowed to trash it if he assumes power in the August 2022 General Election.
“You know the Budget was read recently and it seeks to increase the cost of basic commodities such as water, bread, maize flour, and motorcycles.
“We want to tell them that [the] Budget won’t be passed in Parliament and if it does, we’ll overturn it after three months so that it can be a budget of the common mwananchi,” DP Ruto said in the roadside rally.
On his part, Tharaka-Nithi Senator Kithure Kindiki said that if the Kenya Kwanza camp clinched victory on August 9, the legislature will make a supplementary budget to address the cost of living.
“When we take over the government on August 9, we are going to bring a supplementary budget to bring down taxes so that the prices of food and commodities can come down,” he stated.
Increase in taxes
CS Yatani avoided mentioning the specific sectors of the economy where the government intends to collect taxes when delivering the highlights of the Budget last Thursday.
However, according to the Finance Bill, the state intends to raise an extra Sh50.4 billion in taxes on popular items like as motorbikes, cosmetics and beauty products, jewellery, beer, wines and spirits, chocolate, and bottled water for the fiscal year beginning in July.
The excise duty on a motorbike unit would be increased by 10% to Sh13,403.64 per unit, up from Sh12,185.16.
Cosmetics and beauty items, as well as jewellery, are also targeted in the Bill, with the Finance Ministry hiking the excise charge on them to 15% from 10%.
Beer, cider, perry, mead, opaque beer, and combinations of fermented drinks with non-alcoholic beverages and spirituous beverages with an alcoholic strength not exceeding 6% would be subject to an excise charge of Sh134 per litre, up from Sh121.85.
The tariff on bottled water would increase somewhat, with the Treasury proposing a levy of Sh6.60 per litre, up from Sh6.03.
The state wants to raise the tax on wines, including fortified wines and other alcoholic drinks made from fruit fermentation, from Sh208.20 to Sh229 per litre.
Excise tax on spirits of undenatured ethyl alcohol, spirits liquors, and other spirituous drinks with an alcoholic strength greater than 6% would be raised to Sh335.30 per litre, up from Sh278.70.