Civil servants union petitions State to review taxes levied on income paid to employees

 

As Kenyans march into 2024, Union of Kenya Civil Servants (UKCS), wants the government to reduce taxes levied on salaried workers.

The representative of government employees said the 30 per cent tax increase in Pay as You Earn (PaYE), is straining the workers.

Tom Odege (pictured), the UKCS Secretary General appealed to the government to review the PAYE deductions in the new year. “We want in particular the Housing Levy removed, because we find it unnecessary since it’s hurting workers,’’ he said told the media in Kisumu.

Odege said recent increases will see some Kenyans part with about 60 per cent of their income leaving them with only 40 per cent to take home.

“This is why, we are asking the government, with all sense of humility to review the taxes downward,” he said.

He, however, ruled out calls for industrial strike any time soon, instead saying they will use more diplomatic ways to protest against high taxes.

“We want the State to stop this idea of only listening to unrests as the trigger for action on most pressing administrative issues,’’ he said. Odege claimed that the unprecedented tough economic times in the government had seen many workers resort to survival tactics.

The union, however warned, if diplomatic negotiations fail to prevail, the “very last resort” could be industrial action. Odege said it was saddening that the State was quick to increase salaries, but slow to add them more. The government targets collections from income tax, mainly PAYE and corporate income tax paid by traders to increase by Sh194.2 billion to Sh1.2 trillion in the next two financial years.

“The reason we experience workers running away from government to the private sector is because of poor pay,’’ he said. Odege who is also the Nyatike MP reasoned that they have nowhere to hide since their salary is paid and deducted by the government at will.

In August last year, the Salaries and Remunerations Commission (SRC) chairperson Lyn Mengich, announced a seven per cent to 10 per cent increase in civil servants’ salaries.

The increase was aimed at cushioning government workers against inflation, but Odege downplayed the pay increases.

As things stand, the public servants, he said they were still losing up to 60 per cent of their income. “This is after the introduction of the housing levy, new PAYE rate, NSSF and NHIF deductions,’’ he revealed.

Consequently, Odege said the pay increase was not being felt due to increased tax on PAYE and the high cost of living. Trouble started after the doubling of the tax on petroleum products, from 8 to 16 per cent early this year. This led to the sudden surge in prices of goods and services thus pushing President Ruto’s administration into tough decisions.

President William Ruto regime’s imposition of higher tax on petroleum products during its one and four months in office, has been controversial.

The previous administration, where he also served, avoided raising it and also introduced subsidies to cushion consumers. Already, employers have started implementing the new NSSF rates where staff earning between Sh18,000 and Sh25,000 part with Sh880 a month. The revised rates for the band have seen deductions for NSSF rise to the Sh1,080 upper limit from the current Sh200. This contribution is matched by the employer.

 ByKepher Otieno