Reject Online Issue 91

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ISSUE 091, October 1-30, 2013

Unfiltered, uninhibited…just the gruesome truth

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October 1- 30, 2013

ISSUE 091

Challenges in the VAT bill

A bimonthly newspaper by the Media Diversity Centre, a project of African Woman and Child Feature Service

Review VAT law, Public cry out New law leaves the common man taking more options on priorities By DUNCAN MBOYAH Shock and outrage is how the public received news of the controversial value Added Tax (VAT) on essential commodities. “The Government is playing with us. They are busy telling women to give birth free of charge and a month later they increase prices of milk and other

commodities. What will these children born in public hospitals feed on?” asks Immaculate Aluoch on her social media page. Aluoch now wants fellow women to be careful and plan their families to cope with rising cost of living. She was reacting to the recently imposed Value Added Tax (VAT) on consumable products that became ef-

fective on September 9, following the President’s assent. Whereas, Aluoch like many other citizens is having difficulties in acquiring basic commodities at affordable prices, consumable commodity processors too are feeling the heat and are already having difficulties adjusting to the new law. The rise in cost of items follows an

From left: Women selling their wares at the market. Customers compare prices of maize flour at a supermarket after the introduction of the VAT bill. Pictures: Reject Correspondent implementation of a new tax — related law that came into effect in September — pushing prices of different commodities that were initially zero-rated up by 16 per cent. Kenya Dairy Processors Association (KDBA) notes that imposition of 16 per cent VAT on processed milk has given hawkers of raw products an upper hand as they quote lower prices.

“Sales of milk have dropped by 25 per cent following the enactment of VAT on the product at the beginning of September,” says Kirui Langat, chairman Kenya Dairy Processors Association. He notes that the new tax had led to the increase by KSh10 for half litre packet of milk to KSh55, compared to Continued on page 4

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Reject Online Issue 91 by African Woman & Child Feature Service - Issuu