Kenyans should brace themselves for a surge in the cost of Unga following the new proposals carried in the Draft National Tax Policy by the National Treasury.

This means should the the new tax policy take effect consumers will  continue to pay more for maize flour cassava flour, wheat and meslin flour.

In the new tax policy, the Treasury has  removed the above mentioned grains from the list of zero-rated supplies.

If adopted, the grain millers will not be able to claim reimbursement for input VAT. The move that is likely to exacerbate the prices for the already skyrocketted  commodities.

"VAT zero rating shall be limited to exported goods except transportation of passengers and supply of taxable services by carriers on international voyage or transportation of goods by land for destination terminating outside Kenya,” reads section of the draft National Tax Policy.

The new draft aims to create an efficient and fair tax system that calls for equity in tax administration.

The Draft National Tax Policy also seeks to raise ordinary revenue as a share of GDP to 15.3 per cent and also enlist additional 2.1 million active taxpayers to raise the total number of taxpayers to 8.2 million.

This is despite the introduction of measures by the government including suspension of fees and levies on imported grains.

The millers, however, objected this saying lifting of levies and charges on imported maize, will translate to minimum reduction due to challenges in sourcing for the grains to sustain crushing operations for the next three months-before the next crop is ready.

The millers in a petition to the national government said they face challenges importing the grains from Tanzania due to tough conditions set by the East Africa Community (EAC) member state.

They are now calling government to negotiate with Zambian and Tanzanian authorities to facilitate importation of six million bags of maize to meet the current shortage and lower flour prices.