Nine out of every 10 Kenyans are against plans to levy VAT on basic commodities and services such as foodstuff, exercise books, sanitary towels and electricity. They argue the tax will increase the cost of living and hurt the majority poor.
The findings of the survey funded by Ipsos Synovate are likely to pile pressure on President Kenyatta to withdraw the VAT Bill tabled in Parliament last week.
Kenyans are opposed to Value Added Tax (VAT) on essential goods saying it will exacerbate economic conditions that have worsened since the Jubilee Coalition took over power in March this year, a new study by Ipsos Synovate shows.
Nine out of every 10 Kenyans are against plans to levy VAT on basic commodities and services such as foodstuff, exercise books, sanitary towels and electricity. They argue the tax will increase the cost of living and hurt the majority poor.
About half of Kenyans or 49 per cent feel their economic situations have worsened in the last three months under President Kenyatta who marks his first 100 days in power next week.
The priority concern for most Kenyans was the high cost of living at 54 per cent, followed by youth unemployment (21 per cent) and insecurity (seven per cent).
The survey carried out between June 23 and 30 polled 2,000 respondents in face-to-face interviews. It sought to gauge Kenyans’ take on socio-economic issues.
The findings of the survey funded by Ipsos Synovate are likely to pile pressure on President Kenyatta to withdraw the VAT Bill tabled in Parliament last week.
It also puts the three-month old UhuRuto regime on the spot for failing to bring down the cost of basic goods and services as promised in their Jubilee manifesto.
Kenya’s overall rate of inflation, which tracks the rise in the prices of goods and services, increased steadily to 4.91 per cent in June 2013 from 3.67 per cent in January this year.
An analysis by Ipsos Synovate shows the prices of essential goods such as milk, bread and maize flour have gone up by up to 10 per cent and imposing a VAT charge will push the prices higher.
Consumer lobby groups and civil society organisations have in the past month held public demonstrations to compel the ruling Jubilee Coalition to shelve the tax proposal saying it will disproportionately hurt the poor and make life expensive.
Women lawyers have also asked the government to withdraw the proposed Bill arguing school girls and poor women will be greatly affected.
“The proposed taxation of sanitary pads is a blatant violation of girls’ and women’s constitutional entitlement to basic education and the highest attainable standards of reproductive health,” said Fida Kenya chairperson Ruth Aura.
Legislators from the minority coalition Cord have vowed to shoot down the Bill when it comes up for debate in the National Assembly.
The draft law proposes to make zero-rated goods and services taxable at 16 per cent, and will lead to increases in the cost of milk, bread, infant formula, newspapers, text books, medical dressings and plaster.
The government plans to raise additional revenues of about Sh10 billion under the new scheme.
