VAT exemptions will increase food and medicine prices

VAT exemptions will increase food and medicine prices. FILE PHOTO | NMG

The government recently published the Tax Laws (Amendment) Bill, 2018 which proposes to reclassify some supplies from zero rated to exempt status. Its ultimate aim is to limit zero-rated status to exports.

Upon the successful enactment of the law, only exporters will be eligible for value added tax (VAT) refunds from the Kenya Revenue Authority (KRA).

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Note: The results are not exact but very close to the actual.