MPs reverse Mbadi’s VAT-exempt proposal on vital products

National Treasury and Economic Planning Cabinet Secretary John Mbadi.

Photo credit: Bonface Bogita | Nation Media Group

The National Assembly’s Finance and Planning Committee has rejected a proposal by the National Treasury to raise additional revenue through the erasure of tax benefits extended to businesses, dealing a blow to the government’s larger scheme to raise Sh30 billion via the Finance Bill 2025.

Treasury was banking on shifting the taxation regime of seven products from zero-rated status to exempt as part of efforts to enhance collections in a bill that avoided tax-raising measures.

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