Many lobbying groups and labor leaders expressed concerns about the planned Housing Fund and higher taxation on numerous products, according to a statement issued by the National Assembly.
The Kenya Airline Pilots Association, in particular, suggested that the Housing Fund be voluntary because a segment of working Kenyans had already invested considerably in housing.
The team also claimed that the public was given insufficient information about the initiative, making it impossible for them to endorse Ruto’s recommendations. As a result, they recommended the government to implement public awareness campaigns.
“The association proposed the housing levy be made voluntary to those wishing to own houses under a government programme and also for the government to suspend the housing plan until when there will be an increment in salaries and a reduction in the cost of living,” read the statement in part.
The Petroleum Institute of East Africa, on the other hand, recommended adjustments to petroleum product taxes to allow oil marketers to obtain refunds for items sold in the country.
The team stated that the action will save gasoline costs and benefit the public immensely.
“Surveyors of Kenya also presented their proposals against the introduction of withholding tax on rental income collected by agents appointed by the Commissioner.
“The Institute noted that it will be impractical to remit tax in 24 hours given the logistics required and the jamming of the KRA portal at times,” read the statement in part.
Other taxing schemes opposed during the hearings were a 15% withholding tax on digital content development and a 3% Digital Asset Tax (DAT).
The Finance Committee’s hearings began on May 21, with significant groups such as the Law Society of Kenya (LSK) appearing on the first day.
Before adopting the Appropriation Law, 2023, which specifies how the government gets funds to pay the budget, the Bill must be adopted by June 30.
Njuguna Ndung’u, Treasury Cabinet Secretary, is scheduled to read the Budget Statement on Thursday, June 8.
