NAIROBI, Kenya, Mar 30 – The government on Thursday directed manufacturers of bread and maize flour to reduce prices of such goods following the removal of the Value Added Tax (VAT) imposed on them.
Treasury Cabinet Secretary Henry Rotich said it was the government’s well calculated move to do away with the VAT to ensure the cost of maize flow and bread reduce.
“In order to make these commodities affordable to the common mwananchi,” he said; “I propose to zero rate bread and maize flour to remove VAT all together.”
He asked companies involved in the chain of production and distribution of such commodities to implement the measure directed at reducing the cost of basic commodities.
“Manufacturers, wholesalers and retailers who sell such goods will be expected to reduce the price of these basic commodities failure to which I will reverse the policy,” he warned.
The government further scrapped tax on imported maize for the next four months to alleviate effects of the ravaging drought in parts of the country.
During the announcement when the 2017/2018 budget was read in the National Assembly, Rotich also gifted Muslims with zero rated dates during the month of Ramadhan.