Budget experts in Parliament want MPs to reverse tax cuts on cooking gas and capital goods introduced by President Uhuru Kenyatta government on grounds that the tax measures could curtail revenue mobilisation efforts.
The Parliamentary Budget Office (PBO) argues the reduction of corporate income tax (CIT), value-added tax (VAT) on liquefied petroleum gas (LPG), VAT exemption on capital goods meant to promote investment in the manufacturing sector and zero-rating of services in support business processing outsourcing (BPO), among others, would lead to unprecedented revenue loss which may not have been envisaged in the original revenue forecast.
