Treasury has shelved plans to reintroduce the controversial Vat Bill until after the next government comes to power.

This is after the Bill received much criticism and opposition from the public and some MPs.

The VAT Bill 2012 had attracted a barrage of criticism after it sought to introduce a 16 per cent tax on fertiliser, maize flour, bread, wheat flour, milk and other basic commodities like books.

Other factors that conspired to knock down the Bill include the run-up to the General Election, VAT refunds following growing pressure from the public, and lack of enough time to deliberate on the Bill.

Now the government finds itself in a tight spot as it needs more revenue to meet rising costs.

On the other hand, it needs to keep the cost of basic commodities down.

“There are indications that the Bill will be pushed aside until after the next elections. Right now, the priority is on the county governments Bill and the Finance Bill 2012 that need to be passed to facilitate the devolution process,” said Finance minister Njeru Githae.

Shelving the Bill puts the government on a collision course with development partners such as the International Monetary Fund (IMF) and the World Bank, who were backing the Bill on grounds that it would boost the government’s internal sources of revenue.