Ndindi Nyoro, the Chair of the Budget Committee in Parliament, has voiced concerns over the heavy taxation imposed by the Kenya Revenue Authority (KRA) and other government bodies, urging for increased public involvement before the introduction of new taxes.
In a recent address during a church service, the Member of Parliament for Kiharu highlighted the growing burden of taxation on Kenyans amidst economic challenges.
He emphasized the need for inclusive decision-making processes to mitigate the adverse effects of taxation.
Nyoro cited the example of heightened import duties, expressing apprehension that such measures could undermine the government’s objective of fostering local businesses.
He stressed the importance of soliciting input from stakeholders before implementing tax adjustments, particularly regarding duty increments.
“As you make changes and especially increasing duty like the one we did recently it is important to do public participation. You call stakeholders and engage them,” Nyoro remarked.
He specifically called upon the chair of domestic taxes in Kenya to reconsider the recent duty increment from Ksh.2 million to Ksh.3 million and advocated for dialogue with business entities to assess the impact beforehand.
Furthermore, Nyoro cautioned that the escalation of duties could compel traders to transfer the additional costs to consumers or face significant financial losses, particularly in light of fluctuating currency rates.
The lack of robust public participation in taxation decisions has been a persistent issue, as exemplified by controversies surrounding the implementation of the Housing Bill, which introduced unpopular taxes.
The High Court has previously scrutinized the government’s failure to involve the public in legislative changes, underscoring the importance of inclusive governance in taxation matters.
