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Public speak out following State decision to drop key tax clauses

Residents of Nyeri have elicited varied reactions following yesterday’s decision by the State which led to the removal of controversial clauses from the Finance Bill 2024.

While a section of the public feels more needs to be done to ease the cost of living for poor Kenyans, others have welcomed the move terming it laudable.

Yesterday hundreds of youthful protesters poured into the streets of Nairobi, where they engaged Police in daylong running skirmishes over the proposed new legislation, currently being debated in the National Parliament.

Peris Muthoni, who operates an eatery joint in Nyeri town says dropping the contentious clauses was the best thing the Government could have done in the current hard economic situation facing Kenyans.

She noted that while the exclusion of the clauses is not a panacea to the suffering of Kenyans, it was nevertheless a score for the Government on its willingness to listen to the cries of the ordinary masses.

“The decision by the Kenya Kwanza administration to drop some of the antagonistic clauses from the Finance Bill 2024 was not only good, but thoughtful. By striking out the taxation on bread, cooking oil and other crucial foodstuffs, the government demonstrated its willingness to address the high cost of living Kenyans are currently grappling with.

It would not augur well for the people if the Government of the day keeps on imposing more taxes on the people at a time many of them are hardly living by since they don’t have money to purchase the very basics of their needs,” she said.

Muthoni further termed it awkward to introduce a vehicle circulation at a time the cost of fuel was quite high thanks to the 16 percent fuel levy and warned that any additional levy would have had dire repercussions for low income owners who employ such vehicles in running their small businesses.

“Imposing a motor vehicle tax would definitely have destroyed the middle class who depend on these vehicles to run errands that form part and parcel of their daily life. I am nevertheless at peace now this clause was among those which were eventually dropped yesterday,” she added.

On his part, Genesis Ngunjiri who operates a bodaboda business in Nyeri town and its environs welcomed the changes to the finance bill, but quickly said the government should do to improve the fragile economy.

Ngunjiri argued that the Government should ensure taxation on basic items such as feedstuffs are lowered or altogether done away with.

“We are thankful that the government listened to our concerns and took action to alleviate the potential burdens these taxes would have caused. Removing taxes on bread and cooking oil and imposing them on petroleum products may seem like a relief, but may end up to increased prices for other goods,” pointed out Ngunjiri.

His sentiments were echoed by Mary Mwangi, a bread supplier within Nyeri town, who termed yesterday’s changes as a huge sigh of relief to the public in the face of the current economic struggles.

Mwangi nevertheless said the Government needs to take more proactive measures in order to cushion small businesses against the rising cost of doing business in the country.

But Moffat Ndirangu, a PSV conductor at the Nyeri Matatu Park has faulted the entire Finance Bill claiming it will only make life unbearable for Kenyans.

Ndirangu now wants the Government to go slow on additional levies, but should resort to initiatives that will improve the livelihoods of the people.

“Taxation has become a significant burden for many of us. Therefore, even with the removal of the proposed taxes on bread, motor vehicles, and cooking oil, this finance bill doesn’t seem to favour the common citizen. To the contrary it will only add more pain,” pointed out Ndirangu.

By Samuel Maina and Brenan Atubwa

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