Tuesday, September 10, 2024 – Kenyans can now breathe a sigh of relief after Treasury Cabinet Secretary John Mbadi announced government plans to reduce taxes over the next three years, in a bid to ease the financial burden on Kenyans.
Speaking at the launch of the Financial Year
2025/26 Budget Preparation Process yesterday, Mbadi announced that the Value
Added Tax (VAT) will be reduced from 16% to 14% while corporate tax will drop
from 30% to 25%.
The move is part of a broader strategy to
foster economic resilience, particularly in key sectors such as agriculture,
manufacturing, and housing.
Mbadi emphasised that while the government
will not support any additional expenditures in the medium term, it will
instead focus on improving efficiency, accountability, and the prudent use of resources.
“The government is committed to fiscal
discipline. We aim to enhance transparency in our financial management systems
and in procurement processes,” Mbadi stated.
“Despite the fiscal constraints we are facing,
we will ensure growth, expand opportunities, and prioritize sectors critical
for economic recovery.”
Reflecting on the ongoing fiscal year, Mbadi
noted that the implementation of the FY 2024/25 budget is progressing, despite
the challenges presented by the recent withdrawal of the 2024 Finance
Bill.
“With the Finance Bill no longer on the table,
the government has had to forego additional revenue measures. Therefore, we
have taken steps to realign our priorities with the resources at hand,” he
explained.
The medium-term tax cuts are expected to boost
household purchasing power and enhance business profitability, offering
much-needed relief to both citizens and the private sector.
The Kenyan DAILY POST
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