The Kenyan tax administration is in the news again for more tax reforms and this time it is about to push up the prices of bread and milk.
This tax reform as mulled by the government this time entails the proposal for the introduction of Value Added Tax on Bread and milk.
The government had argued that the reason for proposing this particular tax initiative was to salvage the hurt inflicted on the economy by the sales of milk and bread which are both zero-rated.
Kick Backs As Kenyan Tax Administration Plans VAT on Bread, Milk: More Perspective
It is important to state that the tax proposed is a 16% VAT as the National Treasury submits that the total VAT collected in Kenya comprises about 40% of the total taxes leaving a whopping 18% for tax refunds for products assumed to be consumed by the poor.
Also, the government holds the position that the said items are chiefly consumed by the middle class of society and not the poor hence there was no need to continue in the previous scheme of VAT refunds.
On the flip side, the reaction from the public has been one of tax fatigue, criticizing the Kenyan-led government by President Ruto for introducing multiple taxes in the system.
They also view this recent proposal by the government as arrogance and refusal to listen to the people on the need to lower the cost of living as an additional tax on bead and milk will further add to the sufferings of the people.
Taxmobile.Online has been able to gather reactions trailing the proposal by the government to introduce a tax on bread and milk.