How will Rotich fund KES 2.1 trillion budget?
11 June 2015, 13:50
Nairobi - The question on everyone's lips is simple. How will the government fund ambitious KES 2.1 trillion budget?
Treasury Cabinet Secretary Henry Rotich will explain the above question to Kenyans when he takes the stand Thursday afternoon at Parliament buildings to read out the budget 2014-15 to Kenyans.
The above question will be on everyone's mind.
Rotich is expected by observers to task the Kenya Revenue Authority KRA with eking out KES 1.3 trillion for the year, with the remaining KES 800 billion to be sought from lenders both internal and external.
The reality though is different.
KRA at the moment is badly struggling to hit its targets for the current financial year as they are more than KES 200 billion off the target set last year of KES 1.05 trillion.
Which means that adding the extra amount of money will increase pressure on KRA and likely mean more taxation for Kenyans.
" It is likely that Kenyans will be taxed more in the coming year because at the moment, KRA cannot manage the expected KES 1.3 trillion target," Rawlings Onyando, a finance lecturer says.
" There is the bracket of goods that will likely be targeted, excisable goods such as soft drinks, fuel, alcohol, cigarettes and motor vehicles. Those ones will likely be hit to add some extra juice for KRA," he believes.
Also likely to be on the agenda will be the taxation of landlords, something that Rotich last month was keen to stress needed to be looked at.
Which will mean more burden for Kenyans.
" Unless he pulls a rabbit out of the hat, it is likely that Kenyans will have to deal with more tax. There is no other way around it," Onyando adds.
Kenyans will be waiting with bated breath come 3 PM local time.
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