The National Treasury has proposed slapping value added tax (VAT) on the supply of ordinary bread in changes which would see the cost of the key consumer staple rising by upwards of Sh10. This means that bread will cost more by up to Sh11 for a 400-gram loaf if Members of Parliament are to accept the changes. The proposal to slap VAT on bread, which is charged at the rate of 16 per cent is seemingly the latest push by the National Treasury to increase its mobilisation of taxes to meet an ever-expanding national budget. Ordinary bread, along with other consumer items such as maize and wheat flour, milk and sanitary products have until now been considered important warranting their exclusion from the 16 per cent VAT. Applying VAT on the prevailing retail prices means that bread prices would rise between Sh9 and Sh21, accounting for the final VAT charge alone.
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