In a bold move to secure funding for emerging government expenditures, Finance Minister Mbadi announced plans to reintroduce an eco-levy on most goods. This decision comes after ruling out further tax hikes during his first public remarks in the post. The eco-levy will target areas that do not affect the common citizen, excluding essential products like sanitary pads that sparked protests.
The government faces pressure from citizens and international lenders like the IMF to cut deficits for more financing. The new measures are expected to raise 150 billion shillings and will be presented to parliament by Sept. 30. Mbadi defended the levy against criticisms from businesses, emphasizing the need to protect the environment.
The government aims to reintroduce 49 clauses from the original bill to streamline laws without imposing new taxes. This move reflects the ongoing balancing act between fiscal responsibility and meeting public demands.
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