Editorials

EDITORIAL: VAT impasse calls for a viable, long-term solution

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President Uhuru Kenyatta. FILE PHOTO | NMG

Even as Kenyans await the outcome of their legislators’ deliberations on President Uhuru Kenyatta’s rejection of the Finance Bill this week, what they are truly yearning for is a quick resolution to the prevailing economic woes.

The National Assembly has convened a special sitting tomorrow and Thursday. The MPs were recalled from their month-long recess last week after Mr Kenyatta rejected the Finance Bill with reservations.

MPs had successfully moved an amendment suspending the imposition of a 16 per cent value added tax on petroleum products for two years but the Treasury secretary effected the tax on September 1, which led to an increase in fuel prices,

We aver that the MPs should not play to the gallery by rejecting Mr Kenyatta’s proposals in which he cut the VAT by half to eight per cent.

Cutting the rate by half is bad enough given the dire debt trap that we are currently in. We aver that the measures should be accompanied by thorough spending cuts and accelerated recovery of stolen funds locally and abroad.

Time and again the government has pledged austerity measures but this has always come to naught. It is time MPs, the Judiciary and the Executive also agreed to some absorb the painful cuts. That is the only way the country can succeed in cutting wastage and ensure efficient delivery of services.

We have a bloated public service sector that continues to gobble billions of taxpayers’ funds. While the budget cuts will target hospitality, domestic and foreign travel, seminars and training, it is our hope that these will be adopted without fail. Adopting such measures would go a long way in balancing our budget.

The government must prove to Kenyans that it is serious about adopting cost-cutting measures and budget cuts.

We must caution that politics must be kept out of the VAT debate. All Kenyans want are solid and viable answers to their current woes.

The MPs should do their bit and thoroughly debate the proposals with a view to easing the cost of living for all Kenyans. They should not forget that Kenyans are watching.