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Members Of Parliament Reject Proposal To Raise Tax On Basic Commodities

Jackson OkatabyJackson Okata
May 25, 2022
Reading Time: 1 min read
Members Of Parliament Are Set To Debate The Bill After The Reading Of The Budget Policy Stamen By Treasury Cs.photo/Courtesy

Members of Parliament are set to debate the bill after the reading of the budget policy stamen by Treasury CS.Photo/Courtesy

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Members of parliament sitting in the Finance Committee of the National Assembly  have opposed proposals by the National Treasury to increase taxes on basic food commodities and common household goods.

Chaired by Homabay County Woman Representative Gladys Wanga, the committee says the proposals if passed are likely to lead to increased food prices.

National Treasury CS Ukur Yatani had sought to increase the cost of maize, cassava flour, and cooking gas among other basic products.

The Committee now wants VAT on LPG pegged at 8 percent and not 16 percent as Yatani had proposed.

The MPs have also rejected a proposal to charge excise duty on motorcycles, which would have seen their tax go up.

The legislators at the same time also opposed the proposal to increase the Excise Tax on wines and spirits as it was increased in the Finance Act last year

On the Capital Gains Tax (CGT), the Committee recommended that the rate be revised to 10 percent, not 15 percent that the Yatani wanted.

Tags: finance committeeParliamenttax
Jackson Okata

Jackson Okata

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