Gatanga MP Humphrey Njuguna yesterday said the new VAT law is hurting common mwananchi and should be reviewed.
He said the Jubilee government should consider amending the Act. He said it is unfair for the Jubilee Government to include VAT on goods that have traditionally been spared from paying taxes.
"It was not our wish as MPs to tax basic commodities. We are also shocked to hear that because we never expected basic commodities to be affected, "he said.
Speaking at the CDF office yesterday Njuguna said raising taxes on cooking gas and electricity will raise cost of the living which will eventually translate to high cost of basic commodities.
The MP at the same revealed that the bill was passed by a few critics in the parliament. He added that VAT Act 2013 came into force in October and the Bill was debated and hurriedly passed on the night of August 6, 2013 before lawmakers went on a month's recess.
"The bill should not have passed as this will overburden common mwananchi, "he added. Njuguna said the government to look into the matter adding that it should also do away with ambitious budget it cannot sustain.
Kenyans were hit by price increases as manufacturers and traders added 16 per cent on the prices of goods. He said consumers will pay higher monthly bills as the new law has imposed a 16 per cent tax on all electricity consumption.
Also in the list of taxable supplies that have been excluded from VAT but will now attract the charge at the rate of 16 per cent are fertilisers, farm chemicals, computer hardware and software.
Imposition of the consumption tax on these goods has come as a surprise to many consumers who were made to believe that Parliament's loud opposition to the tax had forced the Treasury to drop it.
The new VAT law only lists 'unprocessed milk' -- which is raw milk -- as tax-free; meaning that all processed dairy products such as pasteurized milk, fermented milk, long life milk, yoghurt, milk powder, butter, cheese and ghee have been put in the tax bracket.
"This burden will be borne by consumers. Higher milk prices will see many consumers stop taking milk or cut consumption, negatively affecting growth of the dairy industry," added the Gatang'a Mp.
A 500 ml packet of milk currently retailing at Sh45 could cost as much as Sh52 beginning next month.