In the financial budget for the year 2024/2025, significant allocations have been earmarked for various sectors, signifying winners and losers in the economic landscape.
Farmers emerge as prominent beneficiaries, securing a substantial allocation of Sh.54.6 billion.
This includes Sh.10 billion for subsidized fertilizer, albeit reduced from the previous year’s allocation.
Livestock management receives Sh.12.3 billion, with additional funding for small-scale irrigation and food security initiatives.
Notable allocations encompass projects like small-scale irrigation and value addition (Sh.647 million), locust control (Sh.2.5 billion), support for youth and women in agriculture (Sh.2.4 billion), and agricultural value chain development (Sh.6.1 billion).
In a bid to ease financial transactions, excise duty for M-Pesa operators sees a reduction from 20% to 15%, potentially lowering transaction costs.
Cement manufacturers also benefit from the removal of excise duty on cement clinker, potentially reducing construction costs.
The budget also addresses vulnerable groups, with allocations for cash transfers to the elderly and orphans amounting to Sh.18.6 billion and Sh.7.9 billion, respectively.
Additionally, excise duty on imported eggs, potatoes, and onions from the East African Community region is waived, benefiting importers.
However, the budget brings challenges for certain demographics.
Alcohol consumers face increased excise duties on wines, beer, and spirits, tied to the alcoholic content of their beverages.
Smokers also bear a heavier burden with harmonized excise duties and increased rates for liquid nicotine.
Furthermore, excise duties on betting, gaming, lottery, and prize competitions surge from 12.5% to 20%.
The government also addresses the shift in alcohol advertising from traditional media to online platforms, expanding the tax framework to encompass online advertisements.
Government Lowers The Cost Of Transferring Money Through M-pesa In Budget Proposals
