Time for KRA to review taxation model

It comes as a relief to already hard hit households and low-income earners that new Value Added Tax (VAT) Bill, to be discussed by Parliament, will not include putting food on the list of those items to be taxed.

While we are alive to the fact that the Treasury has limited options when raising tax revenue, including the fact that a large bulk of the economy is still informal and therefore not registered tax payers, bringing food items such as maize and wheat flour under VAT is unpopular and punitive.