Bakers have disapproved of the government’s move to introduce value-added tax (VAT) on bread and its products.
According to the Bakers Association of Kenya (BAKE), the tax is harsh, following the economic recession and that the sector has deteriorated since COVID-19 hit Kenya.
The Association further resonates that VAT introduction will violate Kenyans right to affordable food.
“The introduction of 16 per cent VAT on this commodity will further increase the average price of a 400g loaf of bread by approximately Sh8, making it unaffordable to the majority of Kenyans,” said BAKE in a letter to the National Treasury. “This will violate the fundamental right to affordable food.”
The deliberated levy comes just months after manufacturers raised the value of bread by Sh5, a move that was initiated due to an increase in global wheat rates.
The government, however, claims that it requires to find options to sustain its 2021-2022 budget.
According to Treasury estimations, the borrowing will stand at about Sh1.5 trillion by July.
By Everlyne Bosibori