Following today’s meeting, NASA has given the government space for one year (to levy the 8% VAT on fuel) while they carry out some reforms.
NASA also made key proposals and said that if the government implements the proposal they may negotiate the proposal to extend the VAT for another year if neccesary, the leaders believe that if the proposals are considered, there will be no need for extension of the VAT. However, if nothing is done on their proposals, NASA will move motion in next years budget to scrap off the VAT.
Below are some of the conditions they gave.
1.Throughout the year, the government should come up with genuine austerity measures
-Elimination of extravagance with all public expenditures to be economical and sensitive to these harsh times
-Eliminating wasteful practices in the government
-The government should live within its means by doing what Kenyan families are doing cutting on what they can afford.
2.Completion of parastatal reforms
3.The government should tame its appetite for big borrowing. NASA explained that the government is borrowing at very oppressive terms and requested the freezing of further borrowing and start borrowing on a more sustainable measures.
4.Tame ambition of infrastructural projects instead they should initiate more welfare projects that affect people directly
5.Reform banking sector to ensure that it is in line with war on corruption and money laundering
6.More speed in the investigations of cases and more convictions
7.Recommend the creation of a special anti-corruption court or enhance it if their and act with the same vigor manifested by the DPP and DCI
8. Recovery of stolen funds to fill budgetary gaps. Come up with a well thought out and effective multi agency recovery asset recovery initiative.
9.Major tax reforms by overhauling management of KRA and KEBS claiming that they have not shown capacity of how to expand tax bracket, how to net tax defaulters and how to stop dumping of goods in our country.