Cooking oil manufacturers across the country have issued a stark warning regarding the proposed 25 percent excise tax on vegetable oil outlined in the 2024 budget.
They anticipate that this measure could potentially lead to a significant hike in the price of cooking oil, potentially soaring up to 80 percent.
In a statement released on Sunday, the manufacturers expressed deep concerns about the implications of this tax, suggesting that it would render cooking oil unaffordable for millions of Kenyans.
Furthermore, they cautioned that such a tax could have a ripple effect, impacting the cost of staple foods like bread.
According to their projections, if the bill is passed, the price of a 400-gram loaf of bread could surge from Ksh. 70 to Ksh. 80.
The manufacturers also highlighted the broader repercussions of this proposed tax, emphasizing that it could trigger a sudden increase in the prices of other essential household items, particularly those reliant on vegetable oil as a raw material.
For instance, they suggested that the cost of soap could rise significantly, from Ksh. 180 to Ksh. 270.
With these concerns in mind, the manufacturers are advocating for the elimination of the proposed 25 percent duty on vegetable oil.
They argue that such a tax would not only impede the production of cooking oil domestically but also contradict the government’s objectives of promoting local value addition within the agricultural sector.
The debate over the proposed cooking oil tax reflects broader tensions surrounding fiscal policy and economic development strategies in Kenya.
As stakeholders await further deliberations on the budget, the implications of this proposed tax remain a subject of intense scrutiny and debate among policymakers, industry leaders, and the public alike.
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