Government proposes a VAT exemption plan on commodities

The treasury CS Njuguna Ndung’u has revealed governments intentions of issuing personalized tax returns on value added tax (VAT) imposed on goods.

Speaking during an interview, CS Njuguna Ndung’u, stated that commodities such as milk and bread will have a personalized tax return, based on customers receipts.

“In this age and technology, we can decide that  we are not going to have tax refund we are going to have personalized tax refunds in your receipts when you buy things from the supermarket and we can say that you have bought bread and milk, we are going to compensate you directly not through the firm,” he elaborated

He further explained that, the VAT exemption on the two products is expected to compensate the poor, however the treasury’s assessment reveals that the goods are mostly consumed by the middle class.

Additionally, the CS said that the practice will help increase the revenues collected by the government, since higher taxes result to a shrinking tax base as Kenyans look for ways to evade tax.