The Consumers Federation of Kenya (COFEK) has opposed the government’s plan to levy a value-added tax on maize and wheat flour saying it will continue straining many families that are already struggling with the current high cost of living.
Under the Finance bill 2020, wheat, maize, and cassava flour will attract a 16 per cent value-added tax (VAT).
Currently, a 2 Kg packet of maize meal which is retailing at Sh130 will cost Sh151 while wheat flour which trades at an average of Sh160 for a 2-kg packet will rise to Sh186.
In a statement, the lobby group urged the committee to immediately withdraw the proposed amendments saying it could trigger the worst ‘economic nightmare.’
“This tax measure is not only poorly timed but is also contemptuous. At a time when consumers are battling with depressed wages, high commodity prices, and lack of job opportunities, the Treasury adds salt to this injury with VAT ON a staple that many families are already struggling to put on the table.”
They further urged all consumers to reject the tax measures, especially when subjected to public participation.
“It should be noted that the government has a constitutional and civic duty under Article 43 of the Constitution to guarantee Wanjiku “to be free from hunger, and to have adequate food of acceptable quality. If MPs go ahead and pass them, we will tabulate how each of the MPs voted and publicly petition consumers to reject them at the ballot for their insensitivity to Kenyans,” COFEK in a statement.
