Thread by @IEAKwame

The total budget deficit is Kshs. 846B. This will be funded with Kshs. 260B from external and Kshs 583B from domestic borrowing. The borrowing training continues. #KEBudget2022_23 1/N

Exemption from VAT for pharmaceutical products. 2/N

Proposal to exampt inputs from VAT parts for the assembly of motor vehicles. 3/N

Amend the Income Tax Act to allow all entities that donate to charitable organizations to deduct those sums. #KEBudget2022_23 4/N

Excise Duty Act: Proposals to allow commissoner general of KRA to exclude tax products based on economic conditions. = This is troublesome as it allows a person other than the legislature to determine tax rates. #KEBudget2022_23 5/N

Proposal to allow spirits used in pharmaceutical products from excise duty. 6/N #KEBudget22_23

Proposal to tax E-cigarettes to change liquid nicotine by introducing excise tax. This assumes that cigarettes and vaping sticks are equally harmful. The medical evidence suggests otherwise. 7/N #KEBudget2022_23

proposal to amend name of @KRACare to Kenya Revenue Service. New clothes for the tax administration service 8/N #KEBudget22_23

Proposal to amend Income Tax Act to require TNCs to make their records available to the tax authorities. 9/N #KeBudget2022_23

General comments: Expanding the reach of Excise taxes and sacrificing policy coherence for what products and services it is applicable for. 10/N #KEBudget2022_23

The treasury is out of tricks and it remains a tax and spending government. #KEBudget2022_23 11/N

The large deficit is equivalent to 6.2% of GDP but has the assumption of a larger nominal GDP than I think is reasonable. 12/N #KEBudget2022_23

My message to the 12th parliament. You and the executive have bequeathed citizens with the government with the largest appetite for expenditure. 13/N #KEBudget2022_23

An interesting fact is that the CS didn't spell out in the live speech what share of revenue would be directed towards debt servicing. Why? 14/N #KEBudget2022_23

The policy blunder of the day was the application of Excise Tax on imported eggs (food). This is a preposterous taxation measure and I hope parliament sees it for what it is. This is the abuse of the principle of Excise tax. 15/N #KEBudget2022_23

In the press statement outside parliament, the CS has stated that "subsidy " for fuels will be maintained until June 2022. Good policy and it couldn't come sooner. 16/N #KEBudget2022_23

The total subsidy for fertilizers will be Kshs. 5.7 B divided into 2.7 .billion for the financial year starting in July 2022 added to the Kshs. 3 B which was passed in the last Supplementary Budget. 17/N #KEBudget2022_23

Leaving the efficiency of the "subsidy" apart, the total of Kshs. 5.7B would suffice for a total of 1.3Million acres of land which = 10% of Kenya's arable land size. It will be inequitably distributed. 18/N #KEBudget2022_23

The CS responds to questions about Kenya Airways and repeats the mantra about national pride and strategic asset for the government. He confirms that the airline will have to reduce the number of routes. 19/N #KEBudget2022_23

In summary, isn't it curious that Kenya has a budget speech today when the last supplementary Budget was signed into law less than a week ago? 20/N #KEBudget2022_23

Folks, that's all for now. @IEAKenya will find the documents and answer any questions you have. 21/21 #KEBudget2022_23