I’ll Reinstate ‘Progressive’ Parts of Rejected Finance Bill, 2024, Says Treasury CS John Mbadi
The National Treasury and Economic Planning Cabinet Secretary, John Mbadi, has revealed plans to reintroduce select clauses from the withdrawn Finance Bill 2024, aiming to bolster the nation’s economic outlook.
During the handover ceremony from his predecessor, Njuguna Ndung’u, Mbadi highlighted the need to revisit crucial provisions that could drive economic growth while addressing public concerns.
Acknowledging the defeat of the Finance Bill 2024, Mbadi stated that it would be inappropriate and disrespectful to the people of Kenya to reintroduce the entire bill. Instead, he suggested the possibility of reviving some of its non-controversial elements to foster national growth.
A key focus of Mbadi’s strategy is tackling the issue of tax expenditure, particularly the rampant issue of fraudulent tax refund claims that have strained the country’s revenue collection.
Mbadi emphasized the need to reduce tax expenditure, pointing out the widespread occurrence of fictitious tax refund claims. He proposed a shift in the tax subsidy framework, suggesting that while subsidies on essential items impacting the cost of living should remain, they could be moved to tax exemption instead of zero rating.
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Mbadi’s approach involves breaking down the Finance Bill’s original proposals and reintroducing them as separate amendments, rather than as a single comprehensive bill.
He indicated that his team is working on some of the proposals from the Finance Bill 2024 to present them to Parliament as individual amendments rather than as part of the original bill.
To ensure these amendments are well-received, Mbadi committed to extensive public participation, addressing a key shortcoming of the initial bill. He emphasized the need for public discussion and consensus on shifting from zero rating to tax exemption, which would benefit consumers rather than businesses.
During his vetting by the Committee on Appointments of the National Assembly, Mbadi reaffirmed his dedication to economic reform through targeted legislative changes. He recognized that valuable provisions in the Finance Bill 2024 were overshadowed by more contentious measures, and he stressed the importance of proper public engagement in bringing forward these specific amendments.
I’ll Reinstate ‘Progressive’ Parts of Rejected Finance Bill, 2024, Says Treasury CS John Mbadi
