Treasury mulls VAT on milk, bread, in fresh revenue push
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 ...
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