Mukurwe-ini Member of Parliament John Kaguchia has opposed the Treasury’s proposal to introduce a 16 per cent value-added tax on bread and milk.
In an interview at Citizen TV on Thursday, he said the parliament will not back Treausry’s proposal because it is against the push for lowering the cost of living.
"We are not looking for a situation where we can introduce higher bread prices and milk. As much as the government is looking at raising revenue, we also have to consider areas where we can raise revenue and where as parliamentarians we can't venture into," the MP said.
"Introducing a tax on bread and milk will raise the cost of living. It is not one of the things we will be supporting.”
He said the parliament would guide the treasury on areas they can and cannot touch.
The proposal to have a 16 per cent Value Added Tax (VAT) imposed on bread and milk was revealed by the Treasury Cabinet Secretary Njuguna Ndung’u.
Njuguna said having bread and milk as zero-rated products has not cushioned the poor households and benefited the middle class.
Nairobi Senator Edwin Sifuna speaking in the same interview said the proposal is a clear indication the government is out of touch with Kenyans' situation.
"CS Ndung'u says bread and milk are largely consumed by the middle class. He knows the statistics that the middle class in this country are a minority," he said.
Sufuna said up to 70 per cent of residents living in Nairobi do not consider themselves as middle class.
"Yesterday I saw a report that only 3 per cent of Kenyans earn Sh50,000 and above. Would you call those people the middle class?" he posed.
The Senator said bread and milk can not be considered luxury commodities.
