In The Radio

Date: 22nd Jun 2011
Radio Station Radio citizen
Host: Lincon njogu and francis luchivya

Topic: Should allowances for members of parliament be taxed or not?

The debate on whether the members of parliament should be subjected to pay taxes in their allowances as stated in the new constitutional dispensation has elicited reactions from every quarter including some of them.

This was aroused by the chairman of the constitution for implementation of the constitution Charles Nyachae every state officer should pay taxes. However, the national assembly remuneration act exempts taxation of allowances of the mps.

Radio Citizen which broadcasts in Kiswahili language gave its audience a space to give out their views on the matter through text messages and calls in its morning talk show programme "Jambo Kenya"

Water and irrigation minister Charity Ngilu was quoted as supporting members of parliament who were opposed to the taxation arguing that when they were sworn-in in 2007, they were shown their salaries and allowances for the five year term and most of them decided to borrow loans and mortgages and they are now surfacing them. She added that those who do not have businesses will suffer most should it be effected.

Chepalungu MP Isaac Ruto supported the move and said that members of parliament read and understood the constitution before referendum in 2010 and most of them supported it and they should be ready to face the taxman. However, he said allowances allocated for them to move to their constituencies should not be taxed since this will demobilize them since the government only gave ministers and permanent secretaries state vehicles that are fully fueled and maintained.

Justice and constitutional affairs minister Mutula Kilonzo said that the law is not clear on whether allowances of mps should be taxed or not.

Gwasi MP John Mbadi opposed the move and said that they are experiencing the rising cost of living and they are still servicing other loans and mortgages.

The new constitution allows for the taxation of all the constitutional holders. In June 14 2008, then finance minister Mr. Amos Kimunya presented a bill in parliament proposing to tax allowances for the constitutional office holders but the bill was later changed.

A person who identified himself as Macharia said that they should be taxed and the money are used to renovate parliament buildings. He added that Kenyans pay taxes as stipulated in the constitution and therefore, since it is now constitutional that they should pay taxes, then they should comply or face the consequences.

Chakoche from Kuria East said impunity is still in some of them instead of showing a good example to other citizens.

Most of those who contributed in the programme appreciated the move that was taken by Kenya Revenue Authority to tax their allowances and said the money accrued from it should be used in the development of the country.

A member of parliament earns Ksh. 200,000 two as basic salary which is taxed and other allowances that amounts to about Ksh. 651,000 is not taxed. If their allowances are now taxed and backdated to August last year when the new constitution came to force, then the Kenya revenue authority will receive about eight million Kenya shillings.

Vincent who contributed through a phone call lauded the move and said that other Kenyans who earn meager salaries and are faced with myriads of problems like drought, floods and tribal conflicts among others are still pay taxes and loans as stated in the constitution.

Andrew Chikulo from Malava said they should pay taxes to show good example to other Kenyans. "They read and understood the constitution and most of them were drumming up support for it but some of them are now opposed to paying taxes in their allowances" Said Andrew.

Since the constitution was promulgated on 27th August 2010, allowances of all constitutional office holders began to be taxed including the president, top army brass, the speaker and judges.

However, the call for the mps to pay taxes has been dismissed by the house speaker in an interview with BBC in London. He added that should the salaries of the mps are raised to Ksh. 800,000 from the current Ksh. 200,000 which is being taxed, then will be ready to pay them.

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