MPs Push For Tax Relief On Flour And LPG
Members of Parliament passed the Finance Bill late Thursday night as they sought to finalize legislation and proposals from the National Treasury aimed at funding the Financial Year 2022/2023 budget.
Lydia Kadima 
Some products will face higher taxes as a result of the measures in the Finance Bill 2022, which would eventually increase their pricing.
Alcoholic beverages, wines, and spirits are among the products targeted by the increased tax.
Members of Parliament rejected the implementation of VAT on maize and wheat flour supplies while cutting VAT on liquefied petroleum gas from 16 percent to 8%.
The Digital Services Tax (DST) has been fixed at a rate of 1.5 percent.
Supply of fertilizer is zero-rated, while maize, cassava, wheat, and meslin flour will continue to be exempt and zero-rated, meaning the commodities will not be subject to VAT at the rate of 16 percent.
The excise duty on fees collected by television stations, print media, billboards, and FM stations on advertisements for alcoholic beverages, betting, and gaming is fixed at 20%.
Kimani Ichungwah, a Kikuyu Member of Parliament, suggested a 20.2 percent to 25.6 percent rise in excise duty on spirits, beer, and wine during a parliamentary session.
As part of the amendments they want included in the Finance Bill 2022, MPs are asking for higher beer taxes and a new duty on imported SIM cards.
Ichungwah also suggested that the excise charge on imported SIM cards be increased by Ksh50.
If Ichungwah's plan is approved, the tax on a liter of beer will increase by 23.1 percent to Ksh150 from Ksh121, increasing the price of a bottle of beer by Ksh15.
MPs adopted a proposed amendment to Finance Bill 2022 to reduce Value Added Tax (VAT) on Liquefied Petroleum Gas to protect consumers from increased prices on basic necessities. If it is implemented, the cost of a 13kg cylinder of cooking gas will drop by at least Ksh230.
The proposed changes come a year after the 16 percent VAT on cooking gas was reinstated by MPs. The action resulted in a huge spike in LPG prices across the country.
The MPs' proposals came as a result of the Treasury's decision to raise the national debt ceiling by Ksh1 trillion, bringing the total debt to Ksh10 trillion.
The amendments are expected to be included in the Finance Bill, which will be given to President Uhuru Kenyatta for assent and inclusion in the 2022 Finance Act.
