Tax Reduction For Basic Commodities

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Members of Parliament have rejected the proposal by the treasury to introduce tax on basic commodities which includes maize, wheat, and cassava flour.

National Planning Committee, led by Homabay woman representative Gladys Wanga, said Kenyans are already struggling with the high cost of living hence the burden will be more.

The proposals had been submitted by Treasury Cabinet Secretary Ukur Yatani in a bid to assist the government raise over 2.1 trillion shillings to fund the budget. 

The team also proposed a reduction of the VAT on Liquefied Petroleum Gas (LPG) from 16 to 8 percent.

Further, the committee opposed proposals by the Treasury to increase the exercise duty noting that, the sector is a source of employment for many Kenyans.

VAT on juices was also opposed as they want it reduced to 13 shillings.

At the same time, the committee advised that rates on bottled water remain unchanged from last’s financial year. 

Among opposed proposals are tax disputes by businesses and individuals who are to pay half of the taxes before launching an appeal in court.

The recommendations by the Gladys Wanga-led team will further be discussed by the parliament before approval.

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