Battle over tax on bread and flour heads to Parliament
Changes in the VAT Bill that will remove exemption of non-essential items from paying the 16 per cent consumer tax. The cost of maize flour, bread, mobile phones and newspapers is likely to go up if MPs pass a Bill to be introduced in the National Assembly on Tuesday. Already, the stage has been set for a potential battle over the Value Added Tax Bill, 2013, given that basic consumer goods have been removed from the list of those exempted from the tax category.
It was submitted by the Cabinet Secretary for the National Treasury, Mr Henry Rotich. In the Bill, Mr Rotich has reduced the list of exempt goods from an estimated 400 in the existing Act to 27.
Among the list of goods that would be exempt from VAT are unprocessed milk, soya beans, raw groundnuts, live animals, meat, offals, eggs, vegetables, fruits and nuts, cereals and fertilisers. However, once some of these goods are processed, and value added, then the tax will apply.... Read the full, comprehensive news article and discuss at The Daily Nation