Members of the National Assembly on Tuesday shot down the proposal by Treasury to impose taxes on pension and LPG gas.
The Treasury had proposed to levy tax on income from the National Social Security Fund (NSSF) and move LPG gas into the VAT-able category, but the MPs argued that the move would be counterproductive.
“Through these ammendments we have returned the benefit to pensioners. We have had a lot of cries from the elderly over the proposal to tax them. What we are doing here is to save the pensioners,” said the Finance and National Planning Chairman Joseph Limo.
Suba MP Millie Odhiambo said the government should look for better ways of looking for revenue instead of going after the vulnerable people in society.
“We need to find more novel ways of cushioning the economy than going after vulnerable people,” she said.