Speaking
during an interview, Job Wanjohi, who is the head of policy research and
advocacy at KAM, projected that bread would increase by Ksh9 over the proposed
introduction of the eco levy.
Wanjohi
explained that the eco levy was targeting the manufacture of plastic
bags which are to store bread.
According
to the Finance Bill 2024, every kilogram of plastic bag will see the government
impose a Ksh150 levy.
Therefore,
with the increase in the cost of production, bread bakers will be forced to
pass done the additional cost to the consumers.
"This
eco levy is likely to increase prices for all plastic packaging materials,
batteries, and hygiene products.
"For
example, the Ksh150 levy per kilogram of plastic packaging will increase the
cost of a 400-gram loaf of bread by Ksh9 from Ksh65 to Ksh74," he stated.
On the
other hand, he also cautioned that other household items such as cooking oil
will also increase because of the levy because of the indirect taxes that
target them.
Should
the eco levy be introduced, 1 litre of cooking oil will increase by Ksh16 while
powder detergents will increase by Ksh30.
Initially, bread was targeted for the 16 per cent VAT.
However, following an uproar, it
was revealed that the decision would be reversed given that many Kenyans use
bread for breakfast.
The Kenyan DAILY POST
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