The government is seeking powers to institute and implement new taxes without the approval of the National Assembly beginning next month. It seeks to scrap a regulation requiring the National Treasury Cabinet secretary to table any VAT regulations to the National Assembly for approval before implementation. Should the new proposal be adopted, it will give the Treasury unfettered freedom to increase or lower VAT as it wishes. Independent tax consultant Jerry Muluka said the proposal gives the National Treasury a free hand to increase the cost of living. If passed into law, the National Treasury will likely make changes on VAT charged on petroleum products, pushing it from the current eight per cent to 16 per cent as proposed by IMF.

Source: The Star June 09, 2021 19:52 UTC