Soy Member of Parliament David Kiplagat has defended the Finance Bill 2024, stating that the revenue-raising measures outlined in the proposed tax amendments are essential for the country.
Speaking to K24 TV on Friday, June 21, 2024, Kiplagat defended the 204 Members of Parliament who voted in favor of the divisive Finance Bill, asserting that they did not abandon Kenyans but rather took necessary steps crucial for the country’s wellbeing.
Tax hikes necessary
The Kenya Kwanza parliamentarian emphasized the necessity for the government to raise revenue to support the implementation of the budget, explaining that failure to pass the Finance Bill would have adversely affected the Budget Appropriation Bill pending parliamentary approval.
Kiplagat highlighted the Ksh200 billion budget deficit that would emerge if Members of Parliament made changes to the Finance Bill, which aims to generate over Ksh300 billion in revenue for the next financial year.
“Running the government is a balancing act because you have to raise revenue to support the budget. We cannot run our country on debt. Our objective as Kenya Kwanza government is to have a balanced budget in the next three years and we can only achieve that by reducing the debt to GDP ratio which has been coming down.
“To do that you have to take the hard decision, and the hard decision is to raise revenue which we can only do through raising taxes,” Kiplagat quipped on the morning show.
The Soy MP highlighted increased expenditure across multiple sectors as a necessitating factor in the move by the government to implement the revenue-raising measures.
Kiplagat cited the government’s need for additional revenue, including Ksh15 billion for county funding, Ksh10 billion for the community development fund, Ksh5 billion to absorb medical interns, and Ksh18 billion to employ 66,000 Junior Secondary School interns, among other expenses.
A total of 204 MPs voted in favour of the bill, while 115 rejected the controversial bill that is scheduled for a final vote next Tuesday.
A total of 319 members were present in the chamber, indicating that 30 MPs were absent during the vote. The National Assembly has 349 members.
At the Third Reading, amendments to the bill will be moved, and the entire House will vote on each clause. Subsequently, the House will take a final vote on whether to approve or reject the bill.
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