Tuesday, July 27, 2010

Should MPs be exempted from paying taxes until expiry of their current term in office?


After a long standoff over MPs' salary increment, the crisis was last week resolved by shelving implementation of the PSC's recommendations on the same and exempting MPs from paying taxes until their current term expires in 2012. Writer Vitalis Kimutai spoke to Kangundo MP Johnstone Muthama and his Narok South counterpart Nkoidila ole Lankas on their views.

YES: Narok South MP Nkoidila ole Lankas

QUESTION: Do you support the move to have MPs exempted from paying taxes until the expiry of their current term?

ANSWER: Members of Parliament should not be ambushed with taxation in the middle of their term. It is unfair as they have a big financial burden of meeting not only their personal and family needs, but also those of their constituents.

QUESTION: It has emerged that the Kenya Revenue Authority (KRA) wrote to Parliament to inform MPs that they would be exempted from taxation. Comment.

YES: Narok South MP Nkoidila ole Lankas

ANSWER: I have not seen the letter, but if indeed it exists then it depends on who has written it, who has signed it and if it has legal backing. MPs carry a lot of financial burden and lead miserable lives as opposed to what is in the public domain that they are supper earners, big spenders and owners of fuel guzzling vehicles.

QUESTION: Should the KRA rescind its decision?

ANSWER: Writing a letter is one thing; the position of the law is another. As long as KRA's move had good intentions, then there is no problem with that.

QUESTION: MPs were also assured during their last week's Kamukunji that they could constitute another salary review commission through the Parliamentary Service Commission to review their salaries and allowances. Do you agree?

ANSWER: What is the need of setting up another commission to deal with the same issues that the Akiwumi Commission has dealt with? Are we saying the Akiwumi one was not legally constituted?

QUESTION: Were MPs fair in forcing President Kibaki to enter into a quid pro quo deal (something in return for something) to let Finance minister Uhuru Kenyatta off the hook?

ANSWER: We had to use all means in our quest to have the issue sorted out before moving on to other pressing issues. Uhuru did not appear that he was ready to listen to MPs on the issue and Kibaki had to step in.

QUESTION: Do you support President Kibaki's caution to MPs that they would not escape paying taxes, as that was what Kenyans had decided?

ANSWER: MPs are not against taxation but they should not be ambushed midway when they have committed their salaries and allowances. Those hitting out at us are either jealous or ignorant of the fact that the proposed increment of the salaries will all be taken away by the taxman. It will only be reflected in the payslip as tax, but will not go into the bank accounts of the MPs.

QUESTION: The salary increment crisis had seen MP refuse to go on recess at a time when the Government expects them to be campaigning for the new law. Was their stand fair?

ANSWER: The MPs had to protect themselves from the taxman. Our refusing to go on recess until the issue was sorted out did not undermine the debate and rallies on the Proposed Constitution. We still found time to campaign for the document in our constituencies and in other parts of the country.

 

NO: Kangundo MP Johnstone Muthama

QUESTION: Do you support the move to have MPs exempted from paying taxes until the expiry of their current term?

ANSWER: Members of Parliament, like all ordinary Kenyans, should pay taxes. There should be no exemptions in taxation whatsoever.

QUESTION: It has emerged that the Kenya Revenue Authority (KRA) wrote to Parliament to inform MPs that they would be exempted from taxation. Comment.

ANSWER: When MPs were elected, they were given a package to pay taxes on their basic salaries but not allowances. The status quo still remains and the Akiwumi Commission indicated it would be wrong to introduce taxation for MPs in the middle of a term. The team recommended salary increment in line with international labour laws and proposed taxation of the same.

QUESTION: Should the KRA rescind its decision?

ANSWER: The Kenya Revenue Authority did not introduce anything new as it merely confirmed the current status, one that has been in place since 1963.

QUESTION: MPs were also assured during their last week's Kamukunji that they could constitute another salary review commission through the Parliamentary Service Commission to review their salaries and allowances. Do you agree?

ANSWER: That is a lie. Trust me, no MP wants to push for salary increment when the public mood is against it. After all, such a move would only become effective after 2012 General Election. Tell me which MP wants to back a pay hike he or she would not enjoy?

NO: Kangundo MP Johnstone Muthama

QUESTION: Were MPs fair in forcing President Kibaki to enter into a quid pro quo (something in return for something) deal to let Finance minister Uhuru Kenyatta off the hook?

ANSWER: There was nothing like a deal, as was claimed in the media. After all, there was nothing on sale to warrant a deal. Uhuru clearly told the MPs the money the Akiwumi Commission proposed had not been factored into the Budget and would not be available. Kibaki also reinforced that position.

QUESTION: Do you support President Kibaki's caution to MPs that they would not escape paying taxes, as that was what Kenyans had decided?

ANSWER: Yes, I support the President on the issue. Even after the Proposed Constitution is enacted, it is clear that MPs will be compelled to pay taxes and they cannot escape it.

QUESTION: The salary increment crisis had seen MPs refuse to go on recess at a time when the Government expects them to be campaigning for the new law. Was their stand fair?

ANSWER: It was fair for them, as they wanted to tackle and conclude the Akiwumi report before taking a break so that they could move on to other issues.

Source: The Standard | Online Edition

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