A section of members of the National Assembly is plotting to completely erase Value Added Tax (VAT) from a number of essential products.
Speaking to Kenyans.co.ke, Nominated MP David Ole Sankok disclosed that the matter will be part of the discussions in the special sitting that will take place on Tuesday, April 14.
The MP noted that he had already written to the speaker demanding that VAT on all essential products with a focus on foodstuffs and medical supplies be scrapped to cushion vulnerable members of the society from harsh economical conditions.
"Why do we give a blanket in the reduction of taxes, It means that a product of Ksh 100 will be reduced by around Ksh2. What difference does it make?
"That is why I am proposing that we have priorities that is food and medical supplies. Taxation for those should be 0 per cent," stated Sankok.
He further offered other non-essential products like mattresses and utensils to have their VAT increased to balance out the revenue loss.
"We cannot just pass the bill as proposed, My amendment is that VAT on food and medicine should be at 0 per cent.
Sankok also pointed out that the bill would be seeking to increase the salary range of Kenyans exempted from Pay As You Earn (PAYE) tax brackets from Ksh24,000 to Ksh30,000.
"I am proposing that the government should not reduce PAYE for people earning above Ksh100,000. Why should they reduce my tax as an MP? What we should do is scrap PAYE for those earning below Ksh30,000," he added.
Embakasi East MP Babu Owino confirmed that the removal of VAT on essential products was part of the discussion noting that the individual products under the category would be determined during the sitting.
In an address on Wednesday, March 25 President Uhuru Kenyatta announced a raft of measures that would see Kenyans pay reduced taxes.
Uhuru explained that he resorted to the move to protect jobs for the people and to provide certainty for all employers as well as their employees.
The president reduced Pay as You Earn tax from the standard 30% to 25% across the board. Corporations also benefited from the tax waiver and were saved from 5% on their corporation tax.
Small scale traders who had been required to submit their turnover tax every month also received a reprieve after its reduction by 2%.
