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Recent attempts by Treasury mandarins to pressure MPs into passing the controversial 2024 Finance Bill in its original form by threatening a Sh200 billion budget cut for any amendments was in bad taste.

Targeted areas for these potential cuts – including county allocations, school feeding schemes, and university funding – highlight the absurdity and recklessness of the charade.

Targeting the National Government Constituency Development Fund and the National Government Affirmative Action Fund for budget cuts while preserving unnecessary expenditures like refurbishing and buying vehicles for the Executive exposes a glaring inconsistency. It begs the question: why prioritise spending on areas that do not directly impact the welfare of the citizens?

If the Treasury were sincere about balancing the budget, the first logical step would be to cut unnecessary expenditures. The penchant for extravagant spending on non-essential projects and luxuries should have been the first to face scrutiny and reduction. At a time when unemployment is high and businesses are struggling to survive due to the tough economic climate, the suggestion to reduce funds allocated for pending bills by Sh5 billion is both insensitive and counterproductive.

These pending bills are critical to ensuring that businesses remain afloat and  jobs are retained, which is vital for overall economic health.

Supporting the manufacturing sector is essential to create more jobs and increase exports. This can be achieved by enhancing the ease of doing business and attracting investors rather than discouraging them. Fortunately, pressure from Kenyans provides a glimmer of hope after several proposed levies were expunged from the finance bill, which is a silver lining for manufacturers.

The removal of the proposed eco levy on diapers, tyres for motorcycles, bicycles, wheelchairs, and tuktuks, along with a reduction in the rate of that levy for certain finished goods demonstrates a move to ease the cost of doing business.

Much as this is positive, theTreasury’s failure to produce a comprehensive list of finished imported goods exempt from the eco levy leaves consumers in suspense, potentially setting them up for future surprises.

An eco levy on some imported finished goods remains a concern. Because of Kenya’s reliance on imports and the insufficient capacity of local industries to meet demand, this levy could still hurt consumers.

An eco levy on local industries could also amount to double taxation, raising the cost of doing business and, consequently, the price of finished goods for consumers.

The decision to scrap proposed VAT on several manufactured goods – including bread, diapers, and sanitary towels – following a public outcry, is a major victory for consumers.

The removal of proposed taxes on mobile money transfers and motor vehicles, and excise duty on vegetable oil and locally manufactured products further underscores the need to support the private sector.

Overall, of the 16 scrapped tax proposals, 10 were directly related to businesses, and influenced by the private sector’s advocacy. This is a win for the ease of doing business.

It is not that Kenyans do not pay enough taxes, as the tax collection stands at 15.2 percent of gross domestic product (GDP). This is comparable to bigger economies, such as India’s, whose tax collection is at 11.4 percent, China (14.6 per cent), and South Africa (24 percent), driven by its mineral wealth.

So proposals to raise the GDP-to-tax ratio from 14 percent to 22 per ent are not justified. The government should engage stakeholders from different sectors and the general public to achieve a balance.

The government should look into other ways of improving lives, start accounting for  collected taxes, and control spending to ensure that Kenyans get value for their money.

That is why public participation and constructive dialogue are needed with a focus on sustainable economic policies that drive growth.

— The writer is People Daily’s Business Editor