Who has won and who has lost in the 2017-2018 Budget

Poor Kenyans are the biggest beneficiaries in the 2017/18 budget after the government announced a reduction of maize flour and bread prices – White maize will also be imported tax free for the next four months to help mitigate the biting drought – Betting companies have also been hit hard after the government highly increased their taxes – The CS said the higher taxation is meant to discourage Kenyans from gambling Treasury Cabinet Secretary Henry Rotich on Thursday March 30 presented the country’s 2017/18 budget in Parliament detailing how the government will collect and spend taxes. Rotich.

Among the budget winners, were tourism, maize importers, senior citizens , private hospitals investors and low income earners while the biggest losers were gaming, lottery and betting companies. Kenyans will get a reprieve after the CS said he will zero rate maize flour and bread, two major foods consumed by a majority of Kenyans. “I propose to zero rate tax on bread and maize flour. I expect to see a price reduction on these basic commodities,” he said.

The government has zero rated bread and maize flour.

To ensure that the country has enough maize, the government will remove duty tax from maize imports for the next four months. “Because of effects of drought, white maize will be imported on a tax free basis for a period of four months,” said Rotich. At the same time, beginning January 2018, all persons above 70 years will receive a monthly stipend of KSh 16,000 plus NHIF cover. Betting companies on the other hand have been hit hard after the government increased their taxes from 7.5% to a whooping 50%. The CS said gambling firms’ gross gambling revenue shall be taxed 50% in what is set to greatly eat into their profits. READ

Tax rate on alcoholic spirits has also been increased from KSh 175 to KSh 200 per litre while the CS has also allocated KSh 83.8 Billion for university education and KSh 10.1 billion to the Higher Education Loans Board.

Betting companies will now pay 50% tax. In addition to the KSh 19 billion for electoral processes, the CS has also given the electoral commission KSh 21.4 billion ahead of the August 8 elections. To fund the KSh 2.63 trillion budget, the government intends to get the funds from borrowing from internal and external sources. The Kenyan budget is being read two months ahead of time to pave way for the August election.

Source link-tuko.co.ke


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