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Kenya Withdraws Certain Tax Hike Proposals Amidst Protests

Kenya Withdraws Certain Tax Hike Proposals Amidst Protests

In response to protests in Nairobi, Kenya's government has decided to withdraw several proposed tax increases from a controversial finance bill.

Kenya’s government has retracted plans to impose multiple tax hikes, the presidency announced. The amendments to the contentious bill come as police used tear gas on demonstrators near the parliament building.

“The Finance Bill has been revised to eliminate the proposed 16 percent VAT on bread, sugar transport, financial services, foreign exchange transactions, and the 2.5 percent Motor Vehicle Tax,” stated the presidency on Tuesday.

The bill has faced significant opposition. Police used tear gas to break up hundreds of protesters gathered for “Occupy Parliament” near the Nairobi parliament building earlier on Tuesday.

Civil society organizations reported that 210 individuals were detained, including protesters, journalists, and human rights group observers.

Amnesty Kenya stated some of its staff members who were observing the protests were also arrested.

“We demand the immediate and unconditional release of all detained protesters and observers,” the group urged.

Nairobi Police Commander Adamson Bungei confirmed on Tuesday that no group had received permission to demonstrate in the capital. Although the Kenyan Constitution guarantees the right to peaceful assembly, organizers must notify the police in advance. Police typically approve unless there are security issues.

Kenya Law Society President Faith Odhiambo reported that officers used tear gas on lawyers at a Nairobi police station when they attempted to see their clients.

The proposed tax alterations in the government’s funding bill for the 2024/25 fiscal year represent the latest effort by President William Ruto’s administration to enhance revenue and reduce borrowing.

Last year, the administration introduced a housing tax and increased contributions to the national health plan, sparking protests.

Ruto defended the proposed taxes last month, asserting the necessity for Kenya to be financially independent.

“The principle is that you must live within your means,” he stated. “I argued to Kenyans that we must start increasing our revenue.”

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Detained protesters react inside a police truck during a demonstration against Kenya’s proposed finance bill in Nairobi, Kenya [Monicah Mwangi/Reuters]

Opposition leader Raila Odinga called on legislators to scrutinize the bill and remove provisions that would disadvantage the impoverished.

“It is worse than the one from 2023, an investment deterrent and a huge burden on millions of poor Kenyans who hoped last year’s tax-induced hardships would lead to a lighter tax load in 2024,” he declared in a statement in early June.

Legislators will hold a line-by-line debate and vote on the budget legislation on Wednesday and Thursday.

Source: ALJAZEERA
Source: ALJAZEERA

ALJAZEERA MEDIA NETWORK

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