The 'zero sum game' of the 2016/17 budget estimates

The 2016 budgetary estimates depict a double sword feature in so many respects. The tax man concedes as much as he takes. Liquid Petroleum Gas shall now be VAT exempt, import duty for energy efficient stoves shall be lowered from 25% to 10%. On the other hand excise duty on kerosene was re-introduced to curb adulteration of fuel in the country, measures that the government says shall help in reducing emissions and uplifting those in the low income carder but what of the increase in the fuel levy from Sh12 to Sh18 per liter that shall push up the transport cost and cost of manufactured goods?

In order to boost the tourism sector that has suffered a decline in the recent past, a VAT cut on national park entry fees as well as exemption on commissions earned by tour operators was proposed. In a counter balance air passenger service charges for external travel rose from $40 to $50 and for internal travel from 500 to 600 Kenya shillings. The revenue will be used exclusively for the promotion of tourism. Another ‘zero sum game’.