Ichung’wah Stands Firm on Sanitary Towels, Diapers Tax Reintroduction
Kikuyu MP Kimani Ichung’wah, on Wednesday, November 6, clarified the government’s rationale behind plans to shift diapers and sanitary towels from zero-rated to exempt status under the Eco Levy.
While addressing the National Assembly, Ichung’wah explained that the bill was designed to protect Kenyans from substandard imports.
“Representatives from Kenya’s manufacturing sector appeared before the finance committee, expressing concern that our local industry is being harmed by the encouragement of imports instead of supporting domestic production,” he noted.
The Eco Levy, introduced by Treasury Cabinet Secretary John Mbadi, aims to reclassify items like sanitary towels and diapers, imposing Value Added Tax (VAT) on them moving forward. Essentially, these products will no longer be taxed at the current zero percent rate.
Ichung’wah explained that there had been confusion among the public, with many believing Parliament was proposing taxes on all diapers and sanitary towels. In reality, the goal was to impose higher levies on imported products to encourage local, high-quality manufacturing.
He continued, “It was industry players through KEPSA who suggested the imposition of levies on imported goods, including diapers and sanitary towels, from regions like China, the Far East, and Europe. Unfortunately, the public was misled into thinking that the National Assembly was taxing all diapers and sanitary towels.”
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Additionally, the MP criticized leaders for misleading the public, saying they prioritized popular opinions over what was right.
Ichung’wah argued that the anti-Finance Bill protests that shook the nation in June and July were based on misinformation, with many of the youth protesting a bill they did not fully understand. He also pointed to the failure of leaders to ensure proper public engagement during the legislative process.
The larger context: Ichung’wah’s comments come at a time when Kenyans are once again facing uncertainty, following a brief victory regarding the taxation of both locally and internationally-produced diapers and sanitary towels.
In June, Kuria Kimani, the Chair of the National Assembly’s Finance Committee, clarified that the proposed eco levy would only target imported finished products.
Months later, Mbadi announced the reintroduction of the eco levy along with two additional bills before Parliament: the Tax Procedures (Amendment) Bill, 2024, and the Public Finance Management (Amendment) Bill, 2024.
Mbadi explained that the reintroduction of these bills was necessary due to the significant revenue loss caused by tax exemptions granted to certain groups.
Ichung’wah Stands Firm on Sanitary Towels, Diapers Tax Reintroduction
