Kenyans are bracing for Tough times ahead as prices of major commodities associated with are set hike following Kenya Revenue Authority’s move to enforce a tax on cereals entering into the city.
In a move that will likely be passed on to Kenyans in form of taxes, KRA and Nairobi County Government invaded Cereal Millers Association premises to demand the cess from the owners of the products.
“We refer to the several engagements held between our officers and member of your association resting with our letter dated 9th December 2021. Please take note that KRA and the Nairobi City County Government shall with effect from Wednesday first March 2022, commence collection of cess on cereals from produce being brought into your members’ premises,” said KRA Commissioner for County Revenue Division Annastaciah Githuba.
Among the products to be affected include wheat which will have a direct bearing on the prices of wheat, rice and Wheat floor.
Already Kenyans are experiencing higher bread and flour prices triggered by growing global demand for wheat following the closure of ports in Ukraine and disruption to supplies from Russia, the two countries which account for a third of global wheat exports.
According to Taxman the cessing will be undertaken by KRA officers outside the premises of the millers.
“For clarity purposes, the responsibility for paying for the cess shall be on the owner of the products and not the miller, unless the miller is the owner,” added Githuba in the letter.
However, Kennedy Nyaga the chairman of the United Grain Millers Association, which is an umbrella of small-scale millers in the country told Business Hub that they are yet to see the letter by KRA
“We haven’t received the letter yet I’ve just heard there is a letter somewhere that seeks to tax cereal millers commodities getting into their premises,” Nyaga said.
Kenyans are already facing tougher economic times ahead as commodity prices continue to rise, amid political jitters occasioned by election campaigns.
A latest report by the Kenya National Bureau of Statistics (KNBS) revealed that the Consumer Price Index (CPI), which measures the price change percentage of a basket of basic commodities consumed, increased by 0.40 per cent to 119.115 in February, up from 118.642 in January 2022.
The International Monetary Fund (IMF) had already warned that inflation in Kenya is expected to average 5.9 per cent this year on surge in cost of food.
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