Treasury hits bread with VAT

Bread

A supermarket attendant arranges loaves of bread on a shelf at a supermarket.

Photo credit: File | Nation Media Group

The National Treasury has proposed slapping value added tax (VAT)  on the supply of ordinary bread in changes which would see the cost of the key consumer staple rising by upwards of Sh10. 

In proposals carried in the 2024 Finance Bill published Satuday, the exchequer has proposed the removal of ordinary bread from the list of zero-rated supplies, a VAT exemption list. 

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