CORD vows to shoot down VAT proposals

Updated Sunday, July 7th 2013 at 14:55 GMT +3

By Linah Benyawa

MOMBASA, KENYA: Members of parliament affiliated to the CORD coalition on Sunday promised to shoot down proposals to impose a 16 per cent Value Added Tax on essential commodities accusing the Jubilee regime which is sponsoring a bill to raise taxes of food of being insensitive to the suffering of the poor.

Led by Gem MP Jakoyo Midiwo, the members of parliament expressed concerns that the Value Added Tax ( VAT) Bill 2013 will affect Kenyans immensely arguing that quite a number of Kenyans were living in abject poverty and increasing the prices of basic commodities would make a big percentage of Kenyans go hungry.

The VAT 2013, seeks to impose a 16 per cent tax on among other basic commodities such as milk, maize flour, wheat flour and farm inputs and ever since it was tabled in parliament, it  has since attracted a lot of public outcry.

However, the National Treasury has however maintained a hardline stance over the proposed tax. Treasury said it is prudent to protect the poor through subsidies on social programmes such as free education and free maternity services rather than through government revenues.

“Members of parliament will ensure that the 16 per cent value added tax on essential commodities Bill is not enacted, majority of Kenyans are living in abject poverty and imposing the tax on them would be a grave mistake because many will go hungry,” said Midiwo.

He was speaking at Benyoka Primary School during the home coming party of Rabai Mp William Kamoti.

Midiwo asked the jubilee government to fulfill its promise to Kenyans when they pledged that  they would reduce prices of basic commodities within 100 days in government.

He added that increasing prices of essential commodities will even increase the poverty levels of Kenyans who are living below a Dollar a day.

“I want to ensure Kenyans that Members of parliament will ensure that basic commodities like food, medicines, electricity and agricultural products that were previously zero rated are not taxed because we are aware that so many Kenyans will not be able to afford,” he added.

Midiwo was accompanied by Kilifi north MP Gideon Mung’aro, Matuga Mp Hassan Mwanyoha, Mombasa county Women Representative Mishi Mboko, Kilifi County Rep Aisha Juma among other legislatures affiliated to the Cord coalition.

On his part, Mung’aro asked all legislatures in all six counties within Coast province to come together and ensure that the VAT Bill 2013 is not passed by parliamentarians.

“Members of Parliament from the region should strive and ensure the VAT Bill 2013 is shoot down.  Mps are aware of the hurdles their constituents are facing and imposing them a 16 per cent prices increase on basic commodities would affect the tremendously,” said Mung’aro.