Collection of taxes illegal, warns budget committee

The Government is collecting taxes illegally after failing to have the Financial Bill passed by Parliament.

Mr Elias Mbau, chairman of the budget committee, said it risked being taken to court over the matter or civil societies could mobilise the public to stop paying taxes.

The Bill was supposed to be passed by end of December, but government has differed with Parliament over several demands, including capping of bank interest rates.

The MP was addressing the press after the launch of Parliament’s macroeconomic model for policy analysis and forecasting at Crowne Plaza in Nairobi on Tuesday.

“There is an illegality being committed here. Things have changed and it is time the government realised the public can go to court or other organisations take the cue and tell Kenyans to stop paying taxes,” he said.

He added that Parliament was concerned that the government had declined to cap the bank interest rates, which was crippling businesses in the country.

“The executive has been unable to reach consensus on capping interest rates.

“To the extent that we represent the people, there is no way we can watch as banks make huge profits and dividends when many are languishing in poverty,” he said.

The model released on Tuesday will empower Parliament to scrutinise budget proposals by the executive, to approve them, vary them or reject them altogether.

Oversight role

“The model will assist Parliament to play its oversight role on budget of mobilisation of resources, allocation, distribution and control,” Deputy Speaker Farah Maalim said.

This will be through providing timely and critical information on the budget to enable MPs make informed decisions.

National Assembly Clerk Patrick Gichohi said the budget office had expanded from one to 16 members of staff, who will be trained for five months on the model.

The consultant, Dr Marein Schaaijk said Kenya is among a few countries that have empowered their parliaments to participate in the budget process.