UDA leaders defend high taxation, say it will solve borrowing
The United Democratic Alliance [UDA] party leaders from the North Rift region have defended the government’s high taxation saying it will solve the borrowing question.
The leaders cited that massive borrowing and external debts have pushed the country into an ailing economy.
Led by West Pokot senator Julius Murgor, the leaders who spoke on Friday at Emboasis Secondary during a thanksgiving ceremony after the school performed well in the last year’s KCSE exams said that the external debts have led to hard economic times and burdening taxpayers.
The leaders who have thrown weight behind the proposed housing finance 3 per cent tax,2023 bill say people at the bottom need resources and infrastructure for production, which is why the Bill should be passed without any amendment.
“The Finance Bill will provide for the tax that will be used to cater for the needs of people at the bottom,” he said.
This comes as the country’s risk of debt distress worsened from ‘high’ to ‘significant’ after breaching four of the six key debt sustainability indicators.
Rev Murgor who is optimistic that the bill will be passed noted that the parliament has no choice but to pass Finance Bill 2023.
“Despite the Kenya Kwanza Government taxing Kenyans a lot, the move will stabilize the economy,” he said.
He said that through improved revenue collection, the Country will avert a heavy public debt crisis.
“We may not borrow but we shall build schools and roads. We want to ease the burden of our people from a lot of debts. We should not borrow money for infrastructure to construct roads, railways and hospitals,” noted Rev Murgor.
“We want to be independent so that the Country can’t collapse. Having many debts is not healthy,” he said.
He said that it was wrong to borrow and pay salaries as interest goes up.
“The Country will be unable to pay the debts. We want to reduce our debts. It is better for salaries to delay and projects to wait a bit so that we can pay debts,” he said.
He pointed out that the United States managed Obama care after its citizens paid high levies.
“Those earning more than 300 dollars and business people were highly taxed. This helped a lot for the poor to manage their health bills,” He said.
He asked parliamentarians to pass the housing Finance tax bill saying the will help poor Kenyans.
“The former regime took debts three times more than what former President Mwai Kibaki used to take. We don’t want Kenya to sink and declare bankruptcy. Let’s embrace the culture of saving for ourselves,” he said.
West Pokot Deputy Governor Robert Komolle said county employees are ready to be taxed for the three.
“We need the 3 per cent housing taxation to come next year when the economy is good,” said Mr Komolle.
He rubbished suggestions that it is another form of tax to burden Kenyans.
The Opposition led by Raila Odinga has been opposed to the move by the Kenya Kwanza administration.
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