Create a body to determine salaries of those paid from public coffers

Create a body to determine salaries of those paid from public coffers


Understandably, much heat has been generated by MPs’ refusal to have their hefty allowances taxed. Although they pay tax on their basic salaries, most of their remuneration is in the form of hidden allowances, which are not tax deductible as is the case with many employees. An independent commission, not Parliament, recommended the allowances.
Without sounding defensive, many MPs carry a greater public burden than the average Kenyan. For instance, while most Kenyans would be called to a harambee by those closest or better known to them, the MP is targeted by people from every part the constituency and sometimes nationally.

Some also pay dearly to make it to Parliament because most Kenyans ask them to buy their votes. Some MPs are still paying debts incurred from the campaigns. Why should Kenyans who sell their votes to the highest bidder expect better?
There are compelling reasons for MPs to pay more in the form of taxes. The law, which we legislated, requires this of us. Taxpayers pay our salaries, allowances and parliamentary programmes. We have to lead by example if only to convince other Kenyans to pay taxes. Nor can we afford the reputation of a privileged non-tax paying lot amid a crunching national poverty.

Moreover, our constituency and national development programmes and the promises we make during election campaigns would never be realised if all Kenyans refuse to pay taxes.
Thanks to improved revenue collection we have witnessed significant growth and investments in major social services during the last six years, and with it, less dependence on foreign aid. Today, donors account for only five per cent of our national budget!
Populist statements by some politicians that they are ready to have their allowances taxed are dishonest and unsustainable. What they need to do is join their colleagues to pass the relevant legislation. Otherwise, they are merely playing to the gallery. A common stand on the taxation issue by MPs would require intense informal consultations because only lawmakers can pass the relevant law.

Loopholes
A situation where you allow individuals to determine their pay with no mechanism for controlling excesses is partly to blame for the current mess. Additionally, the leeway to decide on what constitutes untaxed allowances leaves much room for abuse.
This is why there are huge differences in the income for Government employees and parastatals. For example, some permanent secretaries earn much more than others. And why should a driver employed by the Kenya Anti-Corruption Authority earn much more than an equivalent in a Government ministry? Thus, instead of an independent salary review tribunal for MPs, we need a national remuneration authority with power to determine salaries of all those paid from the public purse. The authority should also be entrenched in the Constitution. Some recommendations of that body may be lump sum salary payments (which are taxed) for MPs and other constitutional office holders such as judges and a more simplified tax system.

Some of those complaining should not pretend to be any holier than the MPs. How many Kenyans make full disclosures of their incomes? How many traders have electronic tax registers as required by law? How come we did not make as much noise when some traders demonstrated against that requirement in 2005? How many of us will, given the chance, collude with merchants not to charge tax on our purchases?

Why do we vote for those we know for sure own stolen public property, which they do not pay taxes on and use taxpayers’ money to bribe their way into power?
Do we ask our pastors to account for Church collections? And how many KRA officials offer tax evaders a reprieve as long as they get a share of the unremitted taxes?

The writer (Kilemimwiria@africaonline.co.ke) is an Assistant Minister for Higher Education, Science and Technology.

By Kilemi Mwiria
http://samotalis.blogspot.com/