Kenyans will now have the opportunity to comment on the Public Finance Bill 2022, which aims at eliminating maize flour, cassava flour, wheat flour and meslin flour from the list of tax-exempt commodities.
This is after the National Assembly pointed out these commodities would be subject to a 16 percent Value Added Tax (VAT), resulting in increased food prices and, as maize flour is a staple meal, a higher cost of living.
The Bill was read for the first time on April 12 and proposes a 9.5 percent hike in excise duty on commodities including bottled water and non-alcoholic beverages, to Sh6.6 per litre (from Sh6).
Fruit and vegetable juices will have a 9.3 percent increase in excise duty to Sh13.3 per litre (from Sh12.2).
In addition, the law proposes raising excise taxes on cosmetics and beauty products, powdered beer, and spirits.
If implemented, the excise duty tax’s share of overall tax collection would rise from 13.8 percent to 14.8 percent.
The bill also proposes to raise the Digital Service Tax (DST) rate from 1.5-3 percent of the consideration received in respect of the service provided in the case of a digital service provider or the commission or fee paid for the use of a platform in the case of a digital marketplace provider, excluding value-added tax.
Clerk Michael Sialai stated in a notice that the memoranda should be presented to the Clerk of the National Assembly, physically delivered at the Parliament Buildings, or emailed to firstname.lastname@example.org by May 4 at 5:00 pm.
“The memoranda may be addressed to the Clerk of the National Assembly, P.O. Box 41842-00100, Nairobi; hand-delivered to the Office of the Clerk, Main Parliament Buildings, Nairobi; or emailed to email@example.com;to be received on or before Wednesday, 4th May 2022 at 5.00 pm,” a part of the notice read.
By John Willy