The National Treasury and Economic Planning Cabinet Secretary John Mbadi has unveiled plans to reintroduce certain clauses from the withdrawn Finance Bill 2024 to salvage the country’s economic prospects.....CLICK HERE TO READ THE FULL ARTICLE>>>
Mbadi, speaking during the handover ceremony from his predecessor Njuguna Ndung’u, emphasised the importance of revisiting key provisions that could stimulate economic growth while ensuring that public concerns are addressed.
“Yes, we have lost the Finance Bill of 2024. It will be wrong and an abuse to the people of Kenya if you tell them that you are reintroducing that bill. We cannot reintroduce it despite the progressive provisions in it,” Mbadi remarked.
However, he hinted at the potential to revive some of its non-contentious elements. “The country must grow. There are provisions that were in the bill that would help the country to grow.”
One of the focal points of Mbadi’s approach is addressing the issue of tax expenditure. The new Cabinet Secretary highlighted the prevalence of fictitious tax refund claims, which have placed a strain on the country’s revenue collection efforts.
“A lot of tax refund claims are fictitious, and we know it, so we must look for ways of reducing tax expenditure,” Mbadi asserted.
To combat this, he proposed a shift in the tax subsidy framework. “There are commodities and items you may not stop subsidizing because they are basic, they impact the cost of living, but you can move them to exemption so that you do away with zero rating of commodities.”
Mbadi’s strategy involves segmenting the Finance Bill’s original proposals and reintroducing them as standalone amendments rather than a single comprehensive bill.
“Our team is already working on some of the proposals that were in the Finance Bill 2024 which we can now put together and see how to take them back to Parliament not as Finance Bill but as other proposals,” he said.
To ensure these amendments resonate with the public, Mbadi promised extensive public participation, a critical component that was seen as lacking in the initial process.
“Kenyans, we must discuss and agree that yes, we will give some relief on some important items but let us do tax exemption instead of zero rating, which ends up benefiting business people and not the consumer,” he explained.
During his vetting by the Committee on Appointments of the National Assembly, Mbadi reiterated his commitment to economic reform through targeted legislative amendments.
He acknowledged that the Finance Bill 2024 contained valuable provisions that were overshadowed by more contentious measures.
“I believe there are good provisions that have been lost in the Finance Bill (2024) that are not contentious, and we can bring them as specific amendments with proper public participation,” he explained.
He stressed that the failure to effectively communicate and engage with the public was a significant factor in the bill’s rejection…CONTINUE READING>>
