NASA lawmakers want fuel tax scrapped, not halved: Mbadi

Legislators allied to the National Super Alliance (NASA) will reconvene next week to make their position known on the 8percent fuel tax proposed by President Uhuru Kenyatta.

Also Read: President Uhuru Kenyatta proposes fuel tax reduction to 8pc

According to Minority Leader John Mbadi, the NASA leaders want the value added tax (VAT) on petroleum products scrapped.

“NASA MPs will convene on Tuesday morning to take a position on the (Finance) Bill,” the Minority Leader told Citizen TV on Saturday.

On his part, National Assembly Majority Leader Adan Duale said they are free to do so but must follow the rules of the House.

“It’s okay for NASA to ask for total scraping of the VAT on fuel. But they must raise the requisite two thirds majority. That’s the procedure, ” he said.

On Friday, President Uhuru Kenyatta proposed that the recently implemented 16percent fuel tax be reduced by half. For the 8percent VAT on fuel to be effected, Parliament will have to endorse it.

The Finance Bill 2018 had been delivered to him the previous day but he rejected to sign it and instead returned it to the National Assembly.

A special sitting will be held on Tuesday for MPs to deliberate the matter on the floor of the House.

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Amani National Congress (ANC) leader Musalia Mudavadi however lauded the President’s move to reduce the fuel tax by half.

“This is the statesman response Kenyans have been expecting from a listening president. He has heard Kenyans and done one better than Parliament in the reduction of VAT to 8%. He even bettered my proposed reduction to either 10percent or 12percent.

“Removing the whole VAT tax wholesome would have been counterproductive to the economy, especially government ability to raise even recurrent expenditure. But retaining it at a high of 16% was punitive and insensitive to the basic needs plight of Kenyans,” he said in a statement on Friday.