Kenyans can now heave a sigh of relief after flour millers said they will not increase prices of the commodity despite the enactment of the new taxes imposed by the Finance Act 2018. The Cereal Millers Association (CMA) said the price of flour would not be affected by the taxes and it could only increase if there was a shortage of maize in the country which is not likely to happen any time soon.
The Cereal Millers Association has assured that the price of maize flour will not increase despite hiked taxes announced last week.
The association on Wednesday said the shelf prices of the staple commodity will not change because millers can seek refunds for VAT they pay on fuel and do not have to pass the cost to consumers.
“After the budget, the milling industry was moved back into exempt that means we could not claim the VATs that were going to come on us. But now following the signing on Friday, we have been moved back to zero.
“So we will be able to claim back the VAT from the fuel. So it will not affect the flour prices as it stands at the moment. There will be no increase of flour prices at all,” Mohammed Ismail, the millers association chairman explained.
There were fears that the prices of maize flour will skyrocket after the signing of the Finance Bill, 2018, by President Uhuru Kenyatta.
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— Breaking News (@News_Kenya) September 27, 2018