‘Finance Bill 2023 will lower food prices’ – UDA

By , K24 Digital
On Wed, 31 May, 2023 09:21 | 2 mins read
UDA Secretary General Cleophas Malala
UDA Secretary General Cleophas Malala. PHOTO/Courtesy

The ruling United Democratic Alliance (UDA) party now claims that the Finance Bill 2023 will lower food prices if passed by MPs.

In a statement on Wednesday, May 31, 2023, UDA says the Bill will zero-rate maize corn flour, cassava, wheat or meslin flour and maize flour containing cassava flour, which will bring down the prices of maize flour in Kenya.

"The Bill proposes to allow for the zero-rating of the supply of maize corn flour, cassava, wheat or meslin flour and maize flour containing cassava flour under the VAT Act. This shall allow Kenyans to continue accessing Unga at affordable prices. Unga forms part of the staple food for many households," UDA said.

UDA on farm input

UDA also says that the Bill will exempt from taxes some farm inputs and raw materials, hence lowering the cost of production.

"The Bill proposes to provide exemptions under the VAT Act for fertilizers and inputs or raw materials locally purchased or imported by manufacturers of fertilizers. This shall lower the cost of fertilizer which will in turn lower the cost of production for farmers. This shall promote agriculture and enhance food security. The production of crops such as maize shall also lower the cost of basic commodities in particular unga," the statement added.

This comes at a time the opposition through the Azimio la Umoja-One Kenya coalition party has called for the withdrawal of the Bill.

Leader of Minority in the National Assembly Opiyo Wandayi on Tuesday said that the Azimio parliamentary group has withdrawn from the bipartisan talks until Kenya Kwanza withdraws the Finance Bill 2023.

"We suspend the joint bipartisan talks until Kenya Kwanza withdraws the punitive Finance Bill 2023. We, therefore, oppose the burden being imposed on working people," Wandanyi stated.

"It is also our position that the Finance Bill as presently crafted must be withdrawn and replaced by a Bill that appreciates the suffering the people of Kenya are going through. Indeed, Azimio MPs have resolved to sign a public pledge to oppose the Bill, awaiting its withdrawal."

MPs are set to debate the Bill once they resume their sittings on June 6, 2023.

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