Treasury Cabinet Secretary John Mbandi has spared essential goods such as milk, bread and maize flour higher taxes in a value-added tax (VAT) review that targets products consumed by the rich like air tickets and aircraft parts.
Mr Mbadi had announced plans to move select commodities from a list of goods that are VAT zero-rated to exempt categories, targeting producers of milk, bread and maize flour in what could have triggered a rise in the retail prices of the commodities.
