VAT reforms: Why manufacturers want tax cuts

National Treasury Cabinet Secretary John Mbadi recently said recently proposed exempting Kenyans earning below Sh30,000 from PAYE. [File, Standard]

Higher household disposable income, increased funding for health, food security, and improved fiscal discipline by the government are among the key areas that many Kenyans want the National Treasury Cabinet Secretary John Mbadi to address in the budget for the next financial year. 

According to the Institute of Economic Affairs’ (IEA) Citizens Alternative Budget, individual Kenyans and businesses want the government to revise the pay-as-you-earn (PAYE) tax rates, which the institute said “can stimulate economic activity and support job creation, especially in MSMEs”.