What if KRA goes ahead and taxes MPs?
The tax sword threatening the MPs’ hefty perks will dent their financial muscle significantly. They know it and that’s why they’ve vowed to fight it to the end, an end which, if indications from the Judiciary are anything to go by, might just turn out to be a bitter and a broke one. A chat with tax experts and auditors from two multinational auditing firms –all who spoke on condition of anonymity because of internal red-tape concerning speaking to the press—revealed that all the perks, namely car maintenance, housing, extraneous duty, entertainment and constituency allowances, will be taxed at 30 per cent. The Sh366,000 blanket mileage package that each MP gets will also face the same axe and so will the Sh3.3 million grant given to every new MP to purchase a new car. Their sitting allowances of Sh5,000, per sitting, have also not been spared. The tax experts argue that these too will have to be cut to Sh3,500 once the taxman strikes. It is this sitting allowance that saw MPs p...