2 July 2013

Kenya: Businessman Urges MPs to Reject Unga Tax

MPs have been asked to reject a proposal in the VAT Bill to impose tax on basic commodities.

United Business Association chairman Jayendra Malde yesterday said imposing tax on milk, sugar and flour will "have a huge impact on common citizens".

He warned such a move will increase in food prices.

"There are many people who cannot afford a proper meal a day. That is why we are asking government not to tax basic commodities," Malde told the Star.

The VAT Bill will be introduced in Parliament today. Proposals contained in the Bill include slapping a 16 per cent tax--up from zero--on basic commodities.

The UBA chairman said overburdening Kenyans could lead to an uprising similar to that seen in Egypt and Tunisia.

"A hungry man is an angry man," Malde said.

He said luxury items should be taxed more and the government should cut wasteful expenditure.

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