The National Assembly Finance Committee Chairman, Kuria Kimani, has said that the National Treasury recommended the proposed 16 percent tax on bread based on diabetes concerns.
Speaking on Citizen TV on Thursday, Kimani also said that they have received arguments from Kenyans ‘that bread is actually not good.’
“We had a very long conversation with the national treasury, on this VAT on bread, the initial thinking was that bread has concern about diabetes, but the argument that we are receiving from Kenyans is that bread is not a luxury good, it is something that people have every morning for breakfast every time.”
Kimani expressed concern about changing consumer behavior resulting from a 16 percent VAT on bread.
However, he did acknowledge that the public's views will be considered before any adjustments are made to the suggested tax on the product.
Did you read this?
“In addition to bread that is baked in the supermarkets, some are baked in informal shops and if we tax bread, people may move from the formal bread and move to those that are baked by the roadside. That could lead to more health concerns,” Kimani said.
“I want to reiterate this, these are proposals and the Committee of Finance and National Planning is asking Kenyans to give their views. We will take everything into consideration when doing our report before taking it to Parliament.”
On May 12, 2024, under the Finance Bill 2024, the National Treasury proposed 16 percent VAT on bread, increasing the cost of Kenya’s favorite breakfast meal by at least Kes 10.
The inclusion of 16 percent will raise the prices from Kes 60 to Kes 70.
