allAfrica.com allafrica.com 27 Jan, 2021 06:45 am

Kenya: Millers Call for Abolishment of Tax to Lower Wheat Flour Prices

Wheat millers want the government to abolish duty on wheat and return it to zero-rated Value Added Tax Millers want wheat in order to cushion consumers against the grain's rising international prices.

The government currently charges a 10 percent duty on imported wheat, with millers arguing that they will reduce the cost of wheat products by the same margin if the duty is removed.Effective this month, wheat products such as bread were moved from zero-rated to exempt VAT status, denying manufactures a tax refund.Millers have also opposed any possible price control to tame the price of wheat products, saying that it will not work well in Kenya's economy.It is a major intervention that would work well as we do not have control over the rising cost of the commodity internationally," said the millers.

The government indicated last week that it was monitoring the rising cost of commodities as it mulls intervention to tame the effects of the price increase.p Wheat millers want the government to abolish duty on wheat and return it to zero-rated Value Added Tax Millers want wheat in order to cushion consumers against the grain's rising international prices.

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