MP Ichungwah Tables A new Housing levy after the previous one was suspended; Features of the new Levy.
MP Ichungwah Tables a new housing levy: Among the features contained in this new levy include; broadening of contributors, new powers for the Treasury Cabinet Secretary, penalty and Interests for delayed contribution.
According to Ichungwah, Kenyans who are employed face the 1.5 per cent salary deductions for the Housing Levy. The legislators maintained this feature even after Justices David Majanja, Christine Meoli, and Lawrence Mugambi, described it as discriminatory.
Notably, Kenyans with an income will also suffer the same deduction including those in the informal sector, mostly those doing business
The bill states,”The Levy shall be payable to the collector for remittance into the Fund, not later than the ninth working day after the end of the month in which the gross salary was due or gross income was received or accrued. An employer shall deduct and remit the amount referred to from the gross salary of an employee; and remit an amount equivalent to the amount deducted to the collector.”
However, The bill also provides that some Kenyans, vulnerable families or low income Families will still be excluded from making any contribution.
The bill reads,”The Cabinet Secretary for the time being responsible for the National Treasury may, on the recommendation of the Cabinet Secretary, provide, by notice in the Gazette, that any income or class of income or any person or category of persons shall be exempt from the application on the imposition of the Housing Levy,”
Further, There will be a penalty for late payment or remission of the levy.
The bill provides,”Where an amount of the Levy remains unpaid after the date when it becomes due and payable by a person liable to remit the amount, a penalty equal to three per cent of the unpaid amount shall be due and payable for each month or part thereof that the amount remains unpaid and shall be summarily recovered as a civil debt from the person liable to remit the amount.”
Last but not least, Any person who contributes but does not get a house, will have a refund of their money, with an interest.
The bill reads,”An agency shall open a separate bank account where voluntary savings shall be kept, and any interest arising from the investment of voluntary savings shall be credited to this account. An agency shall issue an account number to each person making a voluntary saving,”
“A person who has made a voluntary saving and has not been allocated an affordable housing unit and desires to withdraw his or her savings shall give a ninety-day notice to the agency for a refund with accrued interest, if any,”
Also read Video of MP Milly Odhiambo Tackling down Ichungwah goes viral; Ignites debate