Parliament has amended two clauses in the Finance Bill and in the process removed provisions to tax Members of the National Assembly allowances.
Clauses 43 and 47 have been removed from the Bill that would have seen allowances of MPs, Judges and other constitutional office holders subjected to tax.
The move by the MPs was just to rubber stamp a decision they had reached two weeks ago.
Then, they had resolved not to pay taxes on their perks despite pressure from the public, the civil society and Government.
Of the 210 MPs, only three have so far said they are ready to be taxed.
MPs Francis Nyamu (Tetu, PNU), Jeremiah Kioni (Ndaragwa, PNU) and Kangundo MP Johnstone Muthama (ODM-K) have written to House Clerk Patrick Gichohi authorising him to deduct tax on their allowances.
MPs are paid around Sh600,000 in allowances.
In Parliament, immediately after Question Time at 4pm, the MPs went into a Committee of the Whole House to scrutinise the Finance Bill which contained the proposals that their allowances be taxed.
During the motion, all present members voted to remove the two clauses.
In his June Budget Speech, former Finance minister Amos Kimunya had proposed to repeal Section 5 of the National Assembly Remuneration Act and subject the MPs allowances to income tax.
