Sunday, Jul 5, 2020
HomeBusinessAgricultureMaize flour, Cooking Gas zero rated as President Kenyatta assents to 2020 Finance Bill

Maize flour, Cooking Gas zero rated as President Kenyatta assents to 2020 Finance Bill

Maize, Cassava, cooking gas, wheat zero rated as President Kenyatta signs into law 2020/21 Finance Bill

President Uhuru Kenyatta has signed into law the several amendments in the 2020 Finance Bill which include zero rating of Value Added Tax (VAT) on maize, cassava and wheat flour for six months.

The new finance Act also extends the zero rating of cooking gas for one year.

The new law adds to the measures effected by the Government to cushion Kenyans from the adverse effects of the COVID-19 pandemic, which broke out in Kenya on March 13. So far, the country has 6,366 confirmed coronavirus cases with 2,039 recoveries and 148 fatalities.

The Head of State also signed into law a KSh. 3.2 trillion budget and the 2019/20 Third Supplementary Budget on June 30.

Close to 80 percent of the budget will go into recurrent spending at nearly Ksh2.2 trillion and Ksh584.3 billion will go into development spending.

The 2020 budget contains a KSh. 56.6 billion post COVID-19 economic stimulus package and an allocation of KSh.128.3 billion to the government’s Big Four agenda.

Education has been estimated to take a huge chunk of the recurrent budget with university education taking up just under Ksh108 billions while Early Learning & Basic Education (ECD) will cost the taxpayer Ksh88.4 billion.

Payment of teachers’ salaries through the Teachers Service Commission (TSC) will cost taxpayers KSh.264 billion.

The Ministry of Interior intends to spend KSh.128 billion while the Defence Ministry will spend KSh.106.2 billion.

Payment of public debt, which is a first charge on the Consolidated Fund Services, will cost the taxpayer a whooping Ksh904.7 billion.

According to the Cabinet Secretary to the National Treasury, Ukur Yatani, the Treasury will shift focus from foreign borrowing to domestic revenue mobilization to fund the budget.

The Supplementary budget includes KSh. 5 billion allocated to Counties for Coronavirus response and Ksh3.4 billion earmarked for COVID-19 allowances to frontline healthcare workers.

Debate on Bill to re
Kenya’s exports ro

Digital Desk, Metropol TV

Rate This Article: