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Ruto, Raila raise stakes in battle over tax payment

Ruto, Raila raise stakes in battle over tax payment
Raila Odinga addresses supporters at Kamukunji grounds in Kibra on Sunday, February 5, 2023. PHOTO/Raila Odinga/Twitter
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President William Ruto and Azimio la Umoja leader Raila Odinga yesterday clashed over the government’s latest campaign to target big fish over non-payment of taxes.

Speaking at a church function in Ruai, Nairobi, President Ruto maintained that no Kenyan would be exempted from paying taxes, regardless of their standing in society.

Separately, however, while addressing a rally in Kibera, also in Nairobi, Raila accused the government of maliciously targeting his predecessor, retired President Uhuru Kenyatta and his family.

Ruto said under no circumstances will there be a waiver of taxes for anyone and that all Kenyans will pay their fair share.

The National Treasury has in the past granted waivers to individuals and organisations whenever such requests are presented and granted. The Kenya Revenue Authority then exempts such goods and services from taxation for the duration and volumes so approved.

Ruto appreciated the fact that discussions surrounding the need for all to pay taxes were going on among Kenyans and consensus arrived at, that everyone would pay in accordance with the law.

He spoke a day after former First Lady Mama Ngina Kenyatta also added her voice to the debate, saying all should pay tax and those who fail to do should have their property sold to recover the amounts due. She spoke against the background of debate that former First Families would be asked to pay taxes.

Her response appeared aimed at the government, which she said had the instruments to collect taxes through KRA and such an issue need not be politicised.

Speaking at a church in Lamu, Mama Ngina castigated a section of the Kenya Kwanza leaders, who she said have been belabouring the tax subject for political gain.

“I wonder when I hear some people say that others are not paying taxes. I wonder because people wake up and just say things disregarding the fact that the government has a way of running such matters.

One year

“Paying taxes is a must for everyone regardless of their status in society. It is  not a matter to be talked about in the media or in political gatherings.

“There’s no need of maligning some people to prove that you are working,” she said.

She said the Kenyatta family has been paying taxes and that she was ready to pay any taxes should it be found that she has not paid any.

“Even if it is myself who has  not paid taxes even for one year, I am ready to have my property sold to pay the taxes,” she added.  And yesterday, Raila supported her views saying: “Keep politics out of tax.” He told the government to leave the former First Family alone. But in Ruai, Ruto said: “As a country we have all agreed and we have built consensus that irrespective of your status or all other considerations, whatever region you come from or religion you profess… all of us have build consensus that there will be no waiver of taxes for anybody.”

According to him, the debate on tax was “a very good discussion because we are not talking about tribalism, religion, status, who is big or small, old or young… all of us have agreed and this is the best consensus we can have as a nation and it is one of the ways that will help us to deliver our country from the debt burden.”

Tax experts have taken to social media to warn Kenyans that any waivers that are removed or taxes imposed will affect all Kenyans and would not be applied selectively.

One of the areas of contention is inheritance tax on property, which, the experts said, would apply equally to all of the law governing such inher-itance is change.

At his rally at Kamukunji grounds in Kibra constituency, Raila maintained that matters of taxation should not be politicised and should instead be left to KRA.

Raila charged that both President Ruto and his deputy Rigathi Gachagua had politicised the issue and were targeting political competitors, including the Kenyatta family.

“There is a government institution called KRA that is tasked with tax collection. Not Gachagua and Ruto,” Raila said. “Let KRA do their job. Let them (President Ruto and Gachagua) not bring politics into the issue of paying taxes”.

Raila also said claims from a section of Kenya Kwanza leaders that families of retired presidents Uhuru Kenyatta and Daniel arap Moi are exempted from paying taxes were unfounded, a position backed by tax experts.

He said that the Estate Duty Act, which exempted the two families from paying “inheritance tax”, was abolished in 1982, exempting everyone from paying Estate Duty.

“When Kenya attained independence in 1963 there was a succession law that exempted President Jomo Kenyatta from paying estate duty. When Kenyatta died Moi added his name in 1981 but other Kenyans were paying. But in 1982, Parliament passed a law abolishing the law and exempted every Kenyan from paying the tax,” Raila said.

At the same time, he called on the Kenya Kwanza administration to stop harassment of the Kenyatta family.

“You do not know where Kenya is from,” Raila said. “She (Mama Ngina Kenyatta) was arrested and locked up in Kamiti during the struggle for independence. She is in her 80s, why are you insulting her?

Electoral fraud

“Leave Mama Ngina Kenyatta alone, leave Uhuru alone,” Raila said amid cheers from the crowd.

He insisted that Azimio coalition would continue resisting Kenya Kwanza’s policies for allegedly engaging in electoral fraud, reiterating his earlier call that Ruto must step down. His sentiments were echoed by other Azimio leaders, including his former running mates, Martha Karua and Kalonzo Musyoka.

Earlier in the day, Ruto had addressed a gathering outside the church in Ruai, where, speaking in Kiswahili, he said: “I am asking you, don’t you pay taxes? When you go to buy Kimbo, don’t you pay tax? When you buy bread, don’t you pay tax? And you want the rich to be exempted from paying taxes? Aah forget about it! That it is why I am saying, Kenya is not an Animal Farm. All of us are equal in law. Everybody, whether tall or short, rich or poor, must pay tax. Forget about the old language of waivers.”

Ruto reiterated that one of the solutions to the high debt burden is prompt payment of taxes. He said it was his wish for the country to become independent and instead of borrowing, become a lender over time.

The debate comes against the background of a raft of new proposed taxes, including one targeting importers of goods that can be manufactured locally.

Raila has urged Kenyans to resist high taxes, arguing that though taxes had gone up, incomes had not.

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