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Economist warns Treasury on dangers of eliminating input tax

Kakamega Khetias Supermarket attendant arranges foodstuffs, on March 21, 2025. [Benjamin Sakwa, Standard]

The government has been asked to reconsider proposed changes to input VAT in the Finance Bill 2025.

Speaking in an interview with the Financial Standard, Fiona Okadia, an economist at the Institute of Economic Affairs, warned that the changes could seriously undermine the manufacturing sector and stifle industrial growth.

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