World Bank Proposes 16% VAT on Meat, Wheat, Avocado, Coffee to Boost Kenya’s Revenue

• The World Bank recommends a 16 percent VAT on items like meat, wheat flour, toothpaste, avocado, and coffee in Kenya.
• The proposal aims to increase revenue without heavily impacting low-income households.
• These items are currently VAT-exempt, leading to significant revenue loss for the country.
• The World Bank suggests these goods are considered luxuries for many poor Kenyans.
• Other items like popcorn and postal service fees are also suggested for VAT inclusion.
• The proposal aligns with ongoing efforts to reform the Value-Added Tax Act in Kenya.
• The Finance Bill 2025 seeks to adjust the VAT status of certain goods, including medical product materials and animal feed.

Source: eastleighvoice.co.ke

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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