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MONEY:  The National Treasury is calling for proposals on taxation in preparation for next year’s budget in a bid to boost small businesses, housing and healthcare.

“The Treasury has begun the process of preparing the FY 2023/24 national budget in compliance with the provisions of the Public Finance Management Act (PFM), 2012 and the Constitution,” CS Njuguna Ndung’u (right) said in a statement.

The proposals will be used in the making of the budget and the Finance Act for the year 2023/24.

“In particular, Kenyans are encouraged to propose tax proposals that will facilitate achievement of the government’s objectives in agriculture, small and micro-enterprises, housing, healthcare and digital superhighway and creative economy,” said Treasury.

The government is targeting to cut spending by upto 22 per cent, with the President calling for a Sh300 billion savings on the budget.

“In addition, the proposals may include measures on regulatory reforms, revenue administration reforms and any other measures that may include enhanced macroeconomic stability,” it said.

Tax law amendment

The CS said where the proposals will require the law to be amended, submissions should specify the proposed amendment to the tax law and supported by a statement on the issue to be addressed.

The war in Ukraine has caused a spike in food and fuel prices, which President Ruto will have to deal with, as well as rising unemployment and a mountain of debt accrued during the outgoing president’s 10 years in office.

Policy analysts believe that President Ruto won’t have much fiscal room to provide immediate relief.