Tuesday, 3 June, 2025
Help us reduce taxation burden and fight corruption in public service: Busia residents tell National Assembly Finance Committee
June 3, 2025. Busia County
Calls for a fair tax regime and the need for prudent use of public funds have today dominated public hearings on the Finance Bill, 2025 in Busia County.
Residents who participated in the exercise which is being spearheaded by the National Assembly's Departmental Committee on Finance and National Planning at the Busia Agricultural Training Centre noted that although most Kenyans are patriotic tax paying citizens, there was high likelihood of inevitable dissilutionment when revenue made from the collected taxes does not translate to tangible development due to misappropriation of public funds.
During the meeting, other participants stressed the need for resource allocation to prioritize basic services like healthcare, education and other critical areas necessary to empower the communities to tackle emergent challenges in the society.
The Committee delegation which was led by Vice-Chairperson Hon. Benjamin Lang'at assured the participants that their input would be considered during the drafting of the Committee Report and indeed in the subsequent processes in the consideration of the Bill in the House.
"As I stated earlier this is a Bill under Public Participation, wh8ch we are undertaking through this Committee. Your input is crucial for any further amendments. I assure you that what you have raised here will be considered when we draft our Report," noted Hon. Lang'at.
Other issues that emerged at the meeting were concerns on the implications of the proposed amendment to the Minimum Top Up Tax and the Significant Economic Presence Tax.
The Minimum Top Up Tax is targeted to multinational corporations to ensure that they pay at least a minimum 15% tax on their consolidated Global income.
The Significant Economic Presence Tax is targeted to non-resident entities that have presence in Kenya that allows them to draw immense economic benefit.
The current Significant Economic Presence Tax is pegged at 3% of the Gross turnover, at a threshold of Kshs 5M annually. The Bill proposes to remove the provision on the threshold.
Residents had earlier raised concerns on whether the said taxes would significantly raise the cost of items produced within the Country by foreign entities.
Committee Members noted that the two taxes were necessary for fair economic practice and for Kenyans to enjoy the benefits of foreign investments made in the country.
#13thParliament