2016/17 Budget won’t benefit the common mwananchi – MP

Treasury Cabinet Secretary Henry Rotich at the National Treasury buildings on Wednesday, June 8, 2016 before he read the 2016/2017 national budget.


Kiminini Member of Parliament Chris Wamalwa has criticised the 2016/2017 Financial Year Budget, saying it did not take care of the common mwanachi.
 
Treasury Cabinet Secretary Henry Rotich read the Sh2.3 trillion budget on Wednesday afternoon in the National Assembly.

Wamalwa said the increase of tax on kerosene will hurt many Kenyans who use the commodity every day.

The Cord lawmaker said the reduction of excise duty on imported stoves was of no significance as far as relieving Kenyans from tax burden is concerned.

Rotich said tax on kerosene will increase by 10 per cent, while excise duty on stoves will reduce from 25 per cent to 10 per cent.

“This is a public relations budget. The common mwananchil will suffer more because of the introduction of tax on paraffin,” Wamalwa said.

“How many people use LPG gas? Very few, therefore, the reduction of VAT on LPG is of no benefit to most Kenyans,” he added.

The price of kerosene is set to rise by at least Sh6 per litre after the re-introduction of exercise duty on the commodity. 

Rotich said the move is primarily meant to deter oil marketers from adulterating petrol and diesel using kerosene.

The MP however praised the government for allocating Sh19.7 billion to Independent Electoral and Boundaries Commission, saying there was need to pool adequate resources for 2017 polls.

The price of beauty products is set to go up after Rotich proposed to collect more taxes from cosmetics. 

The beauty products will now be charged an excise duty of 10 per cent.

Security, youth and women and farmers are among the big winners of the 2016/17 national budget.

Sh124.04 billion has been allocated to the Defence Ministry and the National Intelligence Service (NIS).

The State Department of Interior and Coordination of National Government received Sh140.6 billion allocation.

Rotich said the allocations would go towards military and police modernisation, and enhanced security operations across the country.

Treasury also set aside Sh4.9 billion to subsidise fertilizer and seeds.

Another Sh8.4 billion has been set aside for the modernisation of the Kenya Meat Commission, the revival of the pyrethrum sector, a livestock and crop insurance scheme as well as the mechanisation of agriculture.

Miraa farmers are also set to benefit from a crop diversification programme, which Treasury allocated Sh1 billion.