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Nairobians to pay heavier taxes as Sonko by-passes MCAs in budget


Nairobi Governor Mike Sonko’s administration has gazetted a commencement date for taxes introduced in this year’s Sh32.5 billion annual budget, effectively bypassing the County Assembly’s debate and vote on the new levies.

Nairobi County Finance and Economic Planning Executive Charles Kerich has in a legal notice to the Assembly indicated that he will use the Nairobi County Provisional Collection of Revenue Act of 2013 to effect parts of the Finance Bill 2019 before debate and vote by MCAs.

“In exercise of the powers conferred by Section 2 of the Nairobi County Provisional Collection of Revenue Act 2013, the County Executive Committee Member for Finance and Economic Planning orders that all provisions of the Bill relating to taxes, fees, charges, levies and penalties shall have effect as though the Bill were passed into law,” reads Legal Notice 3.

NEW TAXES

The notice adds that Nairobians were to start paying the new taxes effective 19th July 2019, but the Sonko administration is yet to instruct its officers to start their implementation.

They include increased parking fees, new charges for garbage collection, fire certificates and inspection for cats and dogs.

Under the Finance Bill 2019, Nairobians will pay Sh400 parking fees up from Sh200, a fire certificate fee of Sh2,000 per annum for all city households, Sh1,000 in health inspection fee for every dog and cat and between Sh100 to Sh600 for garbage collection for all homes.

The Clerk of the County Assembly, Jacob Ngwele, Thursday confirmed that the new charges have taken legal effect even though Nairobians have continued to pay the taxes adopted in the Finance Bill 2018 because City Hall has not yet started enforcing them.

“They came to effect the day it was published. We have seen similar moves at the national level where some taxes change when the minister reads the Finance Bill. It is just a question of implementation by the county, it is up to them,” Mr Ngwele said Thursday.

Read the full story here.

SOURCE: Business Daily