MPs want gov’t to reconsider new tax on fuel products

Three legislators now want the government to reconsider the new tax levy on fuel products as it would hurt Kenyans immensely if implemented.

Gilgil Member of Parliament Martha Wangare, Dan Maanzo of Makueni Town and nominated Senator Isaac Mwaura have appealed to the budget committee in the House to intervene and review the plan afresh.

The trio stated that the cost of living will rise should the commission implement the 16 per cent Value Added Tax (VAT) on fuel products adding ordinary Kenyans will be immensely affected.

This comes as the Energy Regulatory Commission (ERC) Director General Pavel Oimeke on Thursday told MPs that the tax will be implemented unless they amend a 2013 law that put it in place.

“We as a commission also have an obligation to obey existing laws. So we will implement if there is no change in the current VAT Act or Finance Bill being prepared by parliament,” said Oimeke.

The law has been continuously suspended to date, but that window is closing.

The International Monetary Fund has been piling pressure on the government to end the suspension and raise its revenues and reduce budget deficits while slowing down spiraling debt.