In the proposed budget, the government will be spending at least 10 billion shillings per day, 40 percent of which will go to paying off debts.
The National Budget for the 2021/2022 financial year is being read today (June 10, 2021) by the CS for Treasury Balozi Ukur Yatani. The budget, as it is the norm, will be read at the National Assembly. But do Kenyans have any breathing space?
This financial year, Kenyans will have to dig deeper into their pockets to keep this government running through paying high taxes. The government is at the dinner table and Kenyan pockets are the ones on the menu. Tears ahead.
According to economic analyst Kwame Owino, in the proposed budget, the government will be spending at least 10 billion shillings per day, 40 percent of which will go to paying off debts.
At the same time, same Gok will be borrowing at least 2 billion shillings per day to sustain its operations. It is officially a country running on the wheels of debts with Kenyans left on their own. Helpless. Defenseless.
After the budget, bread will officially attract a Value Added Tax of 16 percent. Although the tax had already taken effect with the price of bread for some brands going up by more than 8 shillings. Kenyans will have to look for an alternative.
At the same time, cooking gas will attract 16 percent Value Added Tax. The zero-rating provision will be suspended henceforth. Kenyans will have to pay more, an additional 250 shillings or more to refill their gas cylinders. Homesteads to be hit.
An excise duty of 15 percent will apply on motorcycles that cost 79,000 shillings and above. This is a move by the government to try and cash in from the ever-expanding boda boda sector in Kenya. Price of motorbikes to go up after the budget.
An excise duty of 10 percent will apply for those who make and sell rings, bracelets, and necklaces. Those who bet have no luck. An excise duty of 20 percent to be re-introduced for every bet placed.
At the same time, resident sub-contractors in the mining and petroleum sector will pay a withholding tax of 10 percent on service fees. Nicotine products and their substitutes will attract a 5,000 shillings tax per kilogram. Provision for bad loans will be taxed too.