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Bread and cooking gas price to go up by 14%

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BREAD, PESTICIDES AND COOKING GAS TO BE CHARGED VAT
Kenyans will be shocked next week when the Tax Laws (Amendment) Bill, 2020 is brought before parliament next week. This is the bill meant to legislate the tax measures that Uhuru announced as his economic response to the COVID 19 fight.
While the overall VAT has been reduced from 16% to 14% certain items which were VAT exempt or zero rated have been removed.

These include items such as
Currently VAT Exempt to be Charged 14% VAT if the Bill passes
1. Specialized equipment for the development and generation of solar and wind energy, including deep cycle batteries which use or store solar power upon the recommendation of the Cabinet Secretary responsible for matters relating to energy.

2. Inputs or raw materials supplied to solar equipment manufacturers for manufacture of solar equipment or deep cycle-sealed batteries which exclusively use or store solar power as approved from time to time by the Cabinet Secretary for the National Treasury, upon recommendation by the Cabinet Secretary responsible for energy and petroleum.

3. Plastic bag biogas digesters. 52A. Biogas. 52B. Leasing of biogas producing equipment.

4. Parts imported or purchased locally for the assembly of computer, subject to approval by the Cabinet Secretary for the National Treasury, on recommendation by the Cabinet Secretary responsible for matters relating to information technology

5. Taxable goods locally purchased or imported by manufacturers or importers of clean cooking stoves for direct and exclusive use in the assembly, manufacture or repair of clean cook stoves approved by the Cabinet Secretary upon recommendation by the Cabinet Secretary for the time being responsible for matters relating to energy.

6. Inputs for the manufacture of pesticides upon recommendation by the Cabinet Secretary for the time being responsible for matters relating to agriculture.

7. Materials and equipment for the construction of grain storage, upon recommendation by the Cabinet Secretary for the time being responsible for agriculture

8. Plant, machinery and equipment used in the construction of a plastics recycling plant
9. Insurance agency, insurance brokerage, securities brokerage services

10. Entry fees into the national parks and national reserves.
11. The services of tour operators, excluding in-house supplies.

12. Taxable services for direct and exclusive use for the construction of tourism facilities, recreational parks of fifty acres or more, convention and conference facilities upon the recommendation by the Cabinet Secretary responsible for matters relating to recreational parks.

13. Asset transfers and other transactions related to the transfer of assets into real estates investment trusts and asset backed securities.

Currently zero-rated supplies to be Charged 14% VAT if the Bill passes
1. The supply of liquefied petroleum gas including propane
2. The supply of ordinary bread
3. All inputs and raw materials whether produced locally or imported, supplied to manufacturers of agricultural pest control products upon recommendation by the Cabinet Secretary for the time being responsible for agriculture

4. Inputs or raw materials for electric accumulators and separators including lead battery separator rolls whether or not rectangular or square supplied to manufacturers of automotive and solar batteries in Kenya.
5. Agricultural pest control products

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