He also added that the recent exercise of blocking of counterfeit mobile phones by mobile operators through the Communications Commission of Kenya is expected to bring revenue of over Sh3 billion this year which was being lost through the importation of the fake handsets.
He has however assured Kenyans that there will be no increase of income tax which he said was the biggest fear especially for those in the formal sector.
“Possible considerations have been given to raising general tax rates on income tax, Pay As You Earn (PAYE) and Value Added Tax. However, after review and taking into account the economic situation and our development agenda, I find no scope in raising tax,” assured Githae.
The Treasury has also ruled out the option of domestic or external borrowing saying that may instead increase the government’s debt.
“I am therefore warning anyone who will be planning to get into another strike for salary increase, to know that there is no way out this time round,” Githae said sounding a warning to civil servants who have threatened to go on strike to demand a 30 percent hike of the hardship allowances.
