Kenyans may have to pay more for milk, bread and maize flour if the government passes the 2012 Value Added Tax (VAT) Bill. According to the Consumer Federation of Kenya, the International Monetary Foundation (IMF) is pushing the government to impose a 16% tax on particular basic provisions. The Federation claims that the IMF intends to use the revenue from the proposed tax to recover money borrowed by the Kenya government. The suggested bill will include a tax on wheat flour, seeds, fertilizer and pesticides among other agricultural implements.
Agrochemicals Association of Kenya Chairman, Kuria Gatonye said that the bill will make it impossible for farmers to afford some vital resources because they will be too expensive. The Association along with other stakeholders like the Central Organisation of Trade Unions (COTU) yesterday argued that the proposed bill is not practical. COTU noted that the move could lead to nationwide protests.
Stakeholders in the Dairy Industry have since made plans to present a petition to the Ministry for Livestock, exempting them from the VAT. The petition should be tabled later today.