Kenya Cancels Bread Tax After Protest

Kenya Cancels Bread Tax After Protest. The Ruto-led administration has cancelled some proposed taxes in this year’s finance bill, due to public uproar.

Reacting to what seems to be an unending series of levies by the Ruto government since coming into office in 2022, Kenyans recently organized a protest against a 16% levy on bread.

This triggered an aggressive response on the part of the police who shot tear had used water cannons to try to break up indignant protesters in the capital, Nairobi, leading to the chairman of the parliamentary finance committee, Kuria Kimani, announcing the elimination of some of the taxes proposed in the new bill.

Kenya Sugarcane Farmers Object To 16% Transport Tax

Kenya Cancels Bread Tax After Protest: Fallout from The Protest

Numerous people have been detained, and lawyers earlier joined chanting crowds at the city’s main police station to call for the release of the detainees.

Since his inauguration in 2022, President Ruto has been making moves to cancel the country’s national debt of almost $80bn (£63bn).

One of such move is the introduction of several new taxes, which have been heavily condemned by critics who fear that these levies would end up harming the country’s economy.

The announcement of the cancellation of certain taxes happened at a press briefing, which was attended by President Ruto as well as other lawmakers in the ruling coalition.

The chairman’s finance team has been gathering public opinion on the bill and he stated that the decision to cancel some of the proposals had been made to protect Kenyans from the rising cost of living.

Additionally, taxes on cooking oil, mobile money services and motor vehicles, are some of the other proposed taxes cancelled.

The proposed eco-tax on packaging, plastics, and tyres was also removed, following an outcry with many arguing it would increase the cost of essential goods such as nappies, sanitary towels, computers, and mobile phones.

According to Mr Kimani, the tax would now only apply to imported goods.


DISCLAIMER

The information contained herein is general and is not intended, and should not be taken, as legal, accounting or tax advice provided by Taxmobile.Online Inc to the reader. This information remains strictly the opinion of Taxmobile.Online Inc.

The reader also is cautioned that this material may not apply to, or suitable for, the reader’s specific circumstances or needs, and may require consideration of other tax factors if any action is to be contemplated. The reader should contact his or her Tax Advisers before taking any action based on this information.

All rights reserved. No part of this document may be reproduced, retransmitted or otherwise redistributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Taxmobile.Online Inc.