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First Published September 18, 2018

 

The Government has sought to assure workers of the safety of their contributions should the proposed housing levy become law. The proposal, contained in the controversial Finance Bill, wants workers to contribute 0.5 per cent of their gross salaries to a new low-cost housing development fund, as long as the amount does not exceed Sh5,000. Their employers are expected to match the contribution.

But the proposal has elicited opposition from various quarters, including MPs, who have said it would over-burden taxpayers. Questions have also been raised about how the fund would be administered in terms of ensuring equity in how contributors benefit from the proposed low-cost houses.

Found ineligible

Transport and Housing Cabinet Secretary James Macharia yesterday sought to allay such fears, saying structures had been put in place to ensure that no one loses their deductions even if they do not qualify to get a house. Mr Macharia, who was speaking during an investment forum hosted by the Capital Markets Authority (CMA) in Nairobi, said contributors who were found to be ineligible after between five and 10 years would be refunded their contributions in full plus interest accrued during that period.

“The main complaint that reached Parliament and the reason they picked up the levy as one of the reasons they rejected the Finance Bill was that workers did not really see the value of the fund, especially if they were not assured of getting houses,” said the CS. “But now, we have approached Parliament and guaranteed that Continue reading......

Source: The Standard Media