Protest as Uhuru bid to raise tax on cars gets nod

National Assembly Speaker Justin Muturi. The National Assembly on October 28, 2015 approved proposals by President Kenyatta for the taxation of cigarettes, motorcycles, juice and used cars after MPs opposing them failed to raise the required numbers. PHOTO | NATION MEDIA GROUP 

In Summary

• In adopting the President’s memorandum on the Excise Duty Bill, the MPs brought to an end a drawn-out contest between the Treasury and the Finance, Trade and Planning Committee, in which the interests of tobacco manufacturers were evident.
• MPs primarily from the finance committee and the opposition staged a walk-out after their attempts to overturn the President’s recommendations were hampered by a lack of numbers.

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By JOHN NGIRACHU
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The National Assembly last evening approved proposals by President Kenyatta for the taxation of cigarettes, motorcycles, juice and used cars after MPs opposing them failed to raise the required numbers.

In adopting the President’s memorandum on the Excise Duty Bill, the MPs brought to an end a drawn-out contest between the Treasury and the Finance, Trade and Planning Committee, in which the interests of tobacco manufacturers were evident.

There were only 91 MPs in the House while 233 were needed to vote against the President’s recommendations.

It is understood that there had been lobbying overnight by members of the finance committee.

They adopted the recommendation that unsweetened fruit juices be charged excise duty at the rate of Sh10 per litre, cars over three years old Sh200,000, cars less than three years Sh150,000, cigarettes at the rate of Sh2,500 per mille (one thousand) and every motorcycle Sh10,000.

MPs primarily from the finance committee and the opposition staged a walk-out after their attempts to overturn the President’s recommendations were hampered by a lack of numbers.
Addressing a press conference later, the MPs announced their intention to file a case in the High Court for an interpretation of what form the President’s reservations, when he refuses to assent to a Bill, should take.

MISLEADING PRESIDENT
Led by Minority Leader Francis Nyenze, they accused the President of eroding Parliament’s powers to make laws by prescribing amendments to Bills they have passed and thus making laws “through the back door.”

Mr Nyenze said the Excise Duty Bill would lead to an increase in the prices of juice, sodas and motorcycles, which he said are used by the common man.

“We are opposed to this Bill but because of their tyranny of numbers and manoeuvres, they know we are unable to raise numbers and have passed a bad Bill,” he said.

“We have a situation today where the price of basic goods is very high. We also have a President who is fighting alcohol but making the price of juice to be increased,” Homa Bay MP Peter Kaluma.

Kisumu East’s Shakeel Shabbir accused presidential adviser Abdikadir Mohammed, Chief of Staff Joseph Kinyua and two other unnamed advisers of misleading him.

Mbita MP Millie Odhiambo said the opposition would file the case this morning seeking an interpretation of the Constitution.

Speaker Justin Muturi has in the past ruled that unless one gets 233 MPs to support one’s bid, the President’s memorandum cannot be kicked out.