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"The argument we are receiving from Kenyans is that bread is not a luxury good and it's something people take every morning for breakfast.
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Kimani said they had received the proposal and were asking Kenyans about their views.
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National Assembly Finance Committee Chairman and Molo MP Kuria Kimani has clarified the proposal to introduce a 16 per cent Value Added Tax on bread.
Speaking on Thursday night during an interview with Citizen TV, the MP said the National Treasury cited the high occurrence of diabetes among bread consumers, hence the proposal.
"We had a long conversation with the National Treasury on this VAT on floor. The initial thinking was maybe there is a concern about diabetes and all that," Kimani said.
"The argument we are receiving from Kenyans is that bread is not a luxury good and it's something people take every morning for breakfast.
Kimani said they had received the proposal and were asking Kenyans about their views.
"We will weigh National Treasury's sentiments against what Kenyans are saying before making an informed decision on the proposal and its impacts," the MP said.
"Some of the arguments raised is that in addition to bread sold in the supermarket, there's also bread baked in informal shops and if you tax the bread in the market, people will move from that formal bread to bread baked on the roadside and by these small bakeries which could raise more health concerns."
The Molo MP reiterated that these are proposals and the Committee is asking Kenyans to give their views.
"We will take everything into consideration when doing our report before taking it to Parliament," he said.
On Monday, President William Ruto intervened in the ongoing discussions surrounding the Finance Bill 2024, specifically addressing the proposed tax on bread.
Sources familiar with the matter revealed that the President had directed Treasury CS Njuguna Ndung’u and Kimani Kuria, to ensure the removal of the tax proposal.
The Finance Bill 2024 had suggested implementing a 16 per cent tax on bread, which would have led to an approximate price increase of Sh10 for a 400-gram loaf.
However, President Ruto is said to have expressed concerns over the potential impact on consumers and instructed the relevant authorities to reconsider the proposal.
"Our management of the economy is deliberate and intentional as we lay the building blocks of Kenya's transformation," Ruto said.
"In all this, the people are at the centre of our plans."