Treasury Cabinet secretary Henry Rotich must widen the tax bracket to fund the Sh3.08 trillion budget for the financial year 2019/20, policy and research analysts have said.
Speaking in Mombasa, the analysts said Rotich would also be forced to increase taxes, especially on luxury commodities despite the harsh economic times facing Kenyans.
They, however, cautioned that Rotich who is expected to read the Budget Statement in Parliament tomorrow must reduce heavy dependence on loans to fund the budget deficit because the country has hit the borrowing ceiling.
Prof Gituro Wainaina said though Kenya cannot completely fund its budget without borrowing, the CS must focus on long-term loans so as to give taxpayers adequate time to repay the already chocking debt.
He said Kenya should not borrow to repay loans but create assets that can help generate revenue.
“It’s good to borrow provided we create an asset that can help make revenue. Loans must be used for the intended purpose,” he said.
Former Women Rep Priscilla Nyokabi said Rotich has few options on his table save for expanding the tax bracket.
“Considering the fact that the government is offering free services like education and medication, no citizen should be regarded too poor to pay a little tax to the government that is serving them,” she said.