By Victor Muyakane/ Nicolas Nduati.
The reading of the budget by finance CS henry Rotich is set to elicit a variety of reactions from across the Kenyan public as experts and laymen alike retreat to analyse this year’s budget.
Safe to say, however, right off the bat, a number of elements in society will perceive the budget as unfavorable in varying degrees.
The cost of living is expected to further increase after the government has increased the road maintenance levy component in fuel price from 12 shillings per liter to 18 shillings per liter.
And to curb the increased cases of fuel adulteration, the government has increased excise duty on kerosene.
The government has also introduced a 10 percent duty on cosmetic products which is likely to make beauty products more expensive.
Kenyans using kerosene will have to dig deeper into their pockets for the commodity.
In keeping with a Mwananchi budget, Rotich proposed an increase to 50 dollars in passenger tax flights for international flights up from 40 dollars and a 100 shilling tax increase to 600 shillings, from 500 shillings, for domestic flights. At the same time removing VAT charges for entry into National game parks.
County governments were also on the losing end after revelations by the Cabinet Secretary that levies they charge such as CESS and other licenses may be in violation of the constitution. He however said a policy to guide counties in raising additional revenue is being drafted.
Instead of applying different rates of duty on imported second hand vehicles, Rotich has proposed a 20 percent flat import duty on the value of the vehicle.