RELIEF: CS Mbadi Says Gov’t Plans To Lower VAT, Other Taxes To Relieve Harsh Economy Bites
Kenyans may receive some relief from the country’s harsh economic conditions as the government plans to reduce Value-added Tax (VAT) and other taxes.
In its medium-term budget, the National Treasury intends to reduce VAT from 16% to 14%, as well as reduce corporate and other taxes.
Treasury Cabinet Secretary John Mbadi stated that the government will not support any additional expenditures, but will instead focus on improving efficiency, accountability, and resource management.
On Monday, the Chief of Staff spoke at the start of the FY 2025/26 Budget Preparation Process.
Treasury CS John Mbadi announces plans to reduce taxes over the next three years pic.twitter.com/Q8QVNLnmMY
— Kenyans.co.ke (@Kenyans) September 9, 2024
Mbadi also stated that there are plans to implement a new financial management system with a focus on transparency in the procurement process.
“Agriculture will be prioritized to support manufacturing and economic growth, with a focus on SMEs and housing. Despite operating under fiscal constraints, the government will work to ensure growth and broaden opportunities,” Mbadi said.
The Treasury CS’s fourth medium-term plan aims to transform the agricultural sector, MSME economy, housing and settlement, healthcare, and digital superhighway.
Mbadi also commented on the FY 2024/25 budget, stating that implementation has begun in earnest.
We must pay our debt. There is no debt restructuring in this country, we will not do it – CS Mbadi pic.twitter.com/wxhwTaFbIq
— Kenyans.co.ke (@Kenyans) September 9, 2024
“However, it is important to note that following the withdrawal of the 2024 Finance Bill, the Government has had to forego additional revenue measures,” he said.
“We therefore implemented measures aimed at aligning our priorities with the available resources.”
At the same time, Treasury PS Chris Kiptoo emphasized the importance of adhering to the Budget Review and Outlook Paper (BROP), sector budgets, and revenue bills, including the review of county allocations.
He emphasized the need for a zero-based budgeting approach, using proper budget costing tools, and announced budget review meetings would be held to ensure adherence.
RELIEF: CS Mbadi Says Gov’t Plans To Lower VAT, Other Taxes To Relieve Harsh Economy Bites
