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{
    "id": 421196,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/421196/?format=api",
    "text_counter": 172,
    "type": "speech",
    "speaker_name": "Hon. Ng’ongo",
    "speaker_title": "",
    "speaker": {
        "id": 110,
        "legal_name": "John Mbadi Ng'ong'o",
        "slug": "john-mbadi"
    },
    "content": "Hon. Temporary Deputy Speaker, we know that the demand for milk is inelastic. Those of us who have taken very basic courses in economics know that the demand for milk is inelastic. Regardless of the price, people will still go for milk. Therefore, the moment you make milk expensive, you make life very difficult and unbearable to the people of Kenya. A price change in this product is nearly as sensitive as a change in matatu fares and rent. Therefore, changing the price of milk can greatly affect the cost of living among the lower income groups. Even though the Treasury clarified, after public outcry, that the definition of “unprocessed milk” includes most of the packet milk, for greater clarity, and I want to emphasize this, we need to bring amendments to make it clear in law. The moment it is at the discretion of the Ministry and the KRA that packet milk is tax exempt, as a matter of fact, it is not clear. When you talk of unprocessed milk, the definition is not clear. Therefore, I am seeking to bring all the milk products to the exempt basket, so that it is very clear that milk is an exempt commodity and any business person charging VAT on milk will, therefore, face the force of the law. In the absence of that, even if you threaten business people, they can go ahead and charge VAT if they so wish, because the law is not clear. So, I am bringing clarity to the law. Additionally, I have also included milk and cream, concentrated or containing added sugar, or other sweetening matters. This item was subject to 16 per cent VAT under the old law and is currently subject to 16 per cent VAT. I seek to amend the Act to exempt The electronic version of the Official Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Hansard Editor."
}