The Kenyan government has reversed its initial proposal to impose value-added tax (VAT) on bread and financial transactions, including credit and debit card issuance and foreign exchange dealings, in response to public outcry over the increased cost of living.
The initial proposal to impose VAT on bread had drawn wider criticism from the public, with the government defending the move by stating that the incentive had failed to benefit the target low-income households.
Excise duty on mobile money services by cellular phone providers has been retained at 15%, while the duty on telephone and data services, as well as fees charged for money transfer services by banks, has been increased to 20% from 15%.
Source: businessdailyafrica.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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