Both Deputy President William Ruto and ODM leader Raila Odinga have vowed to reject the proposal to introduce a 16 per cent value-added tax (VAT) on wheat flour, maize flour and cassava flour, which they say has made the Budget unfavourable to ordinary citizens. IMF had expressed fears that with the country headed for elections, implementation of the 38-month programme would be frustrating. “With general elections scheduled for August, tax policy is further complicated by resistance in Parliament to tax increases,” said IMF in its second review of the programme. “We shall continue to review the existing tax expenditure to boost the tax revenues,” said the CS. Consequently, the cost of bread, ugali, chapati and mandazi is likely to go up should the National Assembly approve the proposal to introduce the 16 per cent value-added tax on the supply of wheat flour, maize flour and cassava flour in a bid to reduce tax expenditures.

Source: Standard Digital April 18, 2022 15:06 UTC