Fund budget deficits through joint ventures experts urge gov’t

By Caroline Njenga

The government should come up with innovative ways of recruiting more Kenyans into the tax bracket.

Experts say about half the number of those who are supposed to pay taxes are not because of the way the tax system is designed.

PKF Tax Partner Mburuku Koome says having among others those in the informal sector pay taxes would help the country ease the burden of funding the national budget.

Come this Wednesday, all eyes will be glued on the National Treasury Cabinet Secretary Henry Rotich as he tables the national budget in parliament.

According to the budget policy statement 2016, a lion share of the budget is expected to be allocated to infrastructural projects, energy, health and education.

Tax experts at PKF are proposing that development projects that require huge capital investments be funded through public-private partnerships.

The government projects that the economy will this year grow by 6.1 percent, up from 5.6 percent in 2015.

Economic experts however believe that this will only happen if the macroeconomic environment for doing business is stable reinforced by the recovery in the tourism sector and increased investment in agriculture.

He says there is need to invest more in agricultural projects to ensure the country stops importing foodstuffs.

The government was urged to consider funding budget deficits through joint ventures with the private sector instead of domestic borrowing in order to avoid a debt overload.

He called for administrative reforms in the tax system to ensure every working Kenyan joins the taxpayers kitty

 

 

  

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