Nairobi, March 14 -- The Treasury is considering introducing a 16 percent value-added tax (VAT) on bread and milk in a fresh push to boost revenue collections from middle-class households.

Treasury Cabinet Secretary Njuguna Ndung'u said that studies by government agencies had shown that the current structure where VAT on bread and milk is zero-rated had failed to cushion the targeted poor households and instead benefited the middle class who have relatively high income.

Zero-rated goods are products considered necessary, such as food items, sanitary products, and animal feeds, and are exempt from VAT. Zero-rating these items makes them more affordable for lower-income consumers.

"When we started doing some simulation work, we realised ...