No Tax On Bread, Bodaboda, And Flour: MPs Reject A Proposal By The Government
CS Ukur Yatani had proposed an increase in VAT on bread, flour, and motorcycles to boost the KRA collection to hit its target of KSh 1.78 trillion. However, MPs on Tuesday, June 23, rejected the new taxes recommending their deletion from the Finance Bill 2021.
Deborah Chelangat 
The committee chaired by Homa-Bay Woman Representative Gladys Wanga argued that raising VAT on essential goods like bread, motorcycles, and flour will hit the low-income earners the hardest. Wanga said the proposed amendment was intended to cushion the poor who were already facing hard times occasioned by the COVID-19 pandemic.
In the Tuesday seating, the ODM lawmaker said ordinary bread was a staple food for many Kenyans, and taxing it more will put more pressure on them. “Ordinary bread is a staple for most families today. We propose this to remain zero-rated because even if you say you are moving it to exempt, the cost will be put on Mwananchi through the raising of the cost of bread,” said Wanga. The legislator added that increasing taxes on essential goods was a contravention of President Uhuru Kenyatta's Big 4 Agenda pillar on food security.
