Passaris urges Treasury to increase tax to bar banks, Saccos from lending to government

Nairobi Woman Representative Esther Passaris

Nairobi Woman Representative Esther Passaris has urged the National Treasury to push the 5 per cent withholding tax on the interest income earned from the infrastructure bonds to 20 per cent.

She revealed this in a statement on Thursday, May 16, 2024 seen by Sacco Review where she noted that the current proposed tax will punish banks, Saccos, as well as Pension Funds and hinder them from investing all money in the State infrastructure bonds at the expense of doing business with the people and the private sector.

“In my opinion, the proposed 5 per cent withholding tax on the interest income earned from infrastructure bonds should be increased to 20 per cent so as to completely bar commercial banks, pension funds and Saccos from lending to the government. They ought to concentrate on businesses, not government,” she said.

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Her statement comes hours after she posted a video on her official TikTok saying she will vote in support of the Finance Bill 2024 which has caused a lot of backlash among Kenyans as they seem to notice some key areas like free school feeding programme is scrapped as well as an increase in taxes in different sector.

In 2023, Passaris also voted for the Finance Bill and was fined KSh250, 000 by Azimio la Umoja Coalition, for this action. She however stood her ground arguing that the bill act was good for Kenyans.

By Vostine Ratemo

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