Business operators voice support for suspension of Finance Bill

Nyeri,

Wednesday, July 19, 2023

KNA by Samuel Maina/Mercy Ndegwa

Business operators in Nyeri have welcomed the recent suspension of the implementation of the 2023 Finance Act terming it a reprieve most needed.

Last week Justice Mugure Thande extended orders barring Treasury CS Professor Njuguna Ndung’u from implementing the 2023 Finance Act arguing that an application by the State to lift its freeze was not substantial.

The petition to suspend the implementation of the contentious act was filed by Busia Senator and veteran activist Okiya Omtata, Eliud Matindi, Michael Otieno and four others.

But business operators who spoke to KNA say the suspension of the legislation has given them a temporary breathing space at a time the high cost of doing business is threatening to put them out of work.

They lament that high fuel prices had already impacted negatively on their businesses and any additional taxation would only exacerbate an already bad situation.

Patrick Kaguongo, a fleet supervisor at the Nyeri 2NK Sacco offices noted that even before President Dr William Ruto had assented to the 2023 Finance bill the price of fuel was extremely high and any adjustment upwards would only have made things worse for Kenyans.

“When fuel prices went up recently, we were forced to hike our fares by Sh50 but noted an overall decrease in the number of commuters. If the government imposes additional taxes on us therefore most of our operations will greatly include losing clients due to shrinking purses,” he claims.

Joy Muthoni, a sausage vendor in Nyeri town has also welcomed the court’s decision saying the passage of the bill by Parliament was rushed without even taking cognizance of the input by members of the public.

 She argues that the reasons being offered by leaders on the need to increase taxes through the Finance act are not convincing enough to the common mwananchi and therefore need the government to relook at the new law.

“This implementation of this new finance law will only end up oppressing the marginalized and low-class people who are already bogged down by the cost of living. Majority of these politicians who are supporting this law do not feel the pinch of the high cost of living and how the common person is struggling to make ends meet. In the event the courts uphold this law, the real culprits who will feel the heat are the hustlers at the bottom of the pyramid and not politicians,” she pointed out.

Caroline Wangari, who owns a phone accessories store within the town CBD, opined that she has little information concerning the act and she believes the law is good when suspended.

Be as it may, Wangari believes the government should at all costs work around the clock to address the high cost of basic items such as food and fuel.

“The cost of living is unbelievably high and almost out of reach for the majority of Kenyans. Increasing taxes for whatever reason will only make the lives of us more miserable especially at a time when the cost of electricity and fuel is at an all-time high. The government should first prioritize how Kenyans will afford food at a cheaper price,” she said.

But Peter Gatundu, the proprietor of Kamse hardware, has supported the new act arguing its implementation will boost the country’s revenue collection efforts.

The businessman who admits to have read and understood the contents of the bill said that if the government increases its tax collection base, there will be enough money to fund key development projects.

“I support the Finance Bill 2023 because it will be of benefit to the people, our business and the country. If we do not pay taxes this country will never develop. And if we separate politics from this law the results will be beneficial to all Kenyans,” he pointed out.

On July 1 2023 the Energy and Petroleum Regulatory Authority (EPRA) revised fuel pump prices by an average of 10 shillings in a move that market players say will push the cost of basic goods to an all-time high.

The fuel hike came after President Ruto assented to the 2023 Finance Bill which among others doubled VAT on fuel products from 8 percent to 16 per cent.       

Consequently, a litre of Petrol increased by Sh13.49 while Diesel prices increased by Sh 12.39 per litre.

 Kerosene prices increased by Sh11.96.

In Nyeri, a litre of petrol will retail at Sh197.00 while that of diesel at Sh181.15 the highest since Kenya started capping pump prices.

Courtesy K.N.A