Experts have welcomed the new tax measures proposed by President Uhuru Kenyatta in the wake coronavirus pandemic saying the relief would help protect vulnerable groups.
However a section of Kenyans are calling for zero rating of basic commodities.
Investment analyst Rodney Omukhulu says reduction of VAT by 2% to 14% though in the best interest under the prevailing circumstances would lead to a budget deficit as such present a problem in fiscal planning.
He reckons that zero rating of basic commodities and reducing pump prices will adequately support the vulnerable amid growing concerns over looming economic crisis in the awake of Covid-19.
The overall new tax proposals announced by President Uhuru Kenyatta to cushion Kenyans against the impact of the coronavirus pandemic are expected to rob the tax man close to 100 billion shillings in revenue.
Others measures include 100 percent tax relief for persons earning gross monthly income of up to Sh24,000.
Income tax rate (Pay-As-You-Earn) has been reduced from 30 percent to 25 percent, while the resident income tax from 30 percent to 25 percent, turnover tax rate from the current 3 percent to 1 percent.