Nairobi — The government is proposing the removal of a 25 percent excise duty on vegetable oil under the Finance Bill 2024.

The Kenya Association of Manufacturers (KAM), together with the Association of Edible Oil Manufacturers, opposed the recommendation in its recent submission to the Parliamentary Finance and Planning Committee.

KAM argued that the new tax, coupled with a 10 percent levy on plastic packages, would have pushed a liter of edible oil to Sh468 from an average of Sh168.

Parliamentary Finance and Planning Committee chairperson Kimani Kuria said that the decision was reached following a series of public consultations.

"To protect our farmers, we have proposed excise duty only on imported table eggs, imported onions, and (imported) potatoes to make our products more marketable in the region," said Kuria after the Kenya Kwanza Parliamentary Group meeting in State House Nairobi.

Similarly, Kuria revealed that the 16 percent VAT on bread has also been dropped from the 2024-2025 finance bill set to be tabled in parliament today for debate.

The government is mulling increasing taxes on an array of sectors, with Treasury seeking to scale up taxation in its Medium-Term Revenue Strategy.

Treasury Cabinet Secretary Njuguna Ndung'u had earlier read the proposed Sh3.92 trillion budget to parliament, seeking funding from various sectors, including increased taxation.

Already, lobby groups as well as a section of Kenyans have staged protests in the capital, Nairobi, with a planned sit-in in parliament buildings ahead of the tabling of the bill on the floor of the house.