Home NEWS Local News Mudavadi defends proposals in Finance Bill 2023, says KK will fix economy

Mudavadi defends proposals in Finance Bill 2023, says KK will fix economy

Prime CS Musalia Mudavadi presided over the 40th Annual seminar for Institute of Certified Public Accountants of Kenya (ICPAK). PHOTO/COURTESY

Prime Cabinet Secretary Musalia Mudavadi has urged Kenyans to stop politicizing the Finance Bill 2023 saying it is part of fixing the sorry state of the economy.

Mudavadi made the remarks as he stated the Government has to make tough decisions and that it will take time to remedy the economic situation in the country.

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“We are working towards tightening the loose ends and sealing the loop-holes in procurement processes and procedures. The Finance Bill 2023 is proposing some fundamental measures that will help in addressing the bottle-necks that have been riddled by outrageous procurement processes where what you think has been procured cheaply turns to be very expensive in the long run.” He said

Citing his previous experiences in government, Mudavadi said the question of Value Added Tax (VAT) has been mis-conceptualized and that the proposals made in the Finance Bill 2023, which has attracted mixed responses, should cure the problem once and for all.

“The Government has shifted its subsidy policy from consumption to production. The few beneficiaries on the consumption side are crying out loud. For the Government, the principle of majority beneficiary applies, and through the Finance Bill, the Government proposes to provide exemptions under the VAT Act for fertilizers and inputs or raw materials locally purchased or imported by manufacturers of fertilizers. This will lower the cost of fertilizer, which will in turn lower the cost of production,” explained Mudavadi.

The Prime CS reiterated that President William Ruto’s administration has taken a bold step towards broadening the tax base in order for the nation to be able to boost its revenue.

“This is the only way we will be able to boost agricultural sector operations, enhance food production and create jobs for us to stir the economic growth,” he said Mudavadi.

He made the remarks in Mombasa when he presided over the 40th Annual seminar for the Institute of Certified Public Accountants of Kenya (ICPAK).

Mudavadi urged Kenyans to remain steadfast as the government is burning the midnight oil to ensure it corrects the drain, pain, and strain on the citizen’s livelihoods.

“I have continuously cautioned Kenyans to gird themselves for hard times now and in the near future.  As a government, we do not want to lie and give false hope and promises. I am being pragmatic, realistic, and forthright in my assessment, that resuscitation of the economy will take at least two years or thereabout,” said Mudavadi.

“We all know things went bad before Kenya Kwanza took over and are still bad as we speak today. This experience should prompt us to work together to mitigate the dire situation,” said Mudavadi.

According to Mudavadi, the Government is deploying all the measures within its power to address the challenges and foster a resilient and inclusive economic recovery process.

“As a government, we are not sleeping on the job. The commitment to prioritize the lives and livelihoods of Kenyans above all else is our key priority,” he affirmed

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