Finance Bill 2023 sails through second reading as 176 MPs vote in favour

The contentious Finance Bill 2023 sailed through the second reading after an intense debate in the National Assembly on Wednesday.

A total of 176 Members of Parliament voted in favour of the Bill while 81 opposed.

The Bill now progresses to the committee of the whole House for deliberation amendments proposed by members.

The Finance Bill 2023 proposes that an employee contributes 3 per cent of his basic salary and a similar amount to come from the employer, provided that the sum of the two do not exceed Sh,5000, with the money going to the National Housing Development Fund.

The Finance Bill 2023 proposes a deduction of 1.5% from an employee’s basic to the National Housing Development Fund.

The bill also proposes to revert the VAT charged on petroleum products to 16 per cent from the current 8 per cent which could have a significant adverse effect on the cost of living considering the ripple effect fuel has on the economy.

The bill also imposes new taxes on beauty products among other proposals.