@ Genghis, firstly, i'm not an economist. How do you propose the gava spurs the economy? The way I read the situation, inflation is currently being imported (via high fuel prices/weaker shilling), not by effective demand for domestically produced goods and services. The question should be will having more people in the tax net paying less per person in taxes increase inflationary pressure?
What I am saying is that we've worked for many years without a real increment from the government (via reduced taxation)while being hit by inflation.
My point is that KRA are still finding it a challenge to widen the tax net, while gava continues to fritter away the little that they do collect on dubious projects such as Anglo-fleecing etc.
The answer in my view is to develop an effective strategy to widen the net, spend judiciously, then gava can collect less from more people.
We must accept that currently the tax burden is on too few persons (both individual and corporate). When you lessen the burden, you may then attract and 'capture' those outside the net. This, in my view, should not have an adverse impact on inflation.