Public outcry as Government sets to double Tax on Petroleum Products

Eldama Ravine, Saturday June 24, 2023

KNA by Ivy Juma

Kenyans are bracing themselves for the impact of the recently passed Finance Bill, which has doubled the tax on petroleum products from eight to 16 percent.

The move has sparked public outcry, with many Kenyans expressing dissatisfaction with the government’s decision.

The bill was passed after the third reading by the National Assembly’s Finance and National Planning Committee chairman, Kuria Kimani. It will now be sent to the president to assent for it to become law.

On Wednesday night, 184 MPs voted to double VAT on fuel while 88 MPs voted against it. The proposed bill is set to be effective on 1st, July 2023.

An increase in VAT on petroleum products is expected to hit homes, farmers, and businesses, all who are already grappling with the high cost of living.

Interviewed by KNA bodaboda riders in Eldama Ravine town Koibatek Sub County greatly opposed the increase of petrol levy lamenting due to the nature of their work, they rely on daily use of petrol and doubling the levy means an increase in the prices of the commodity.

The bodaboda riders also said that passengers may resist any fare increase and this could lead to further challenges for the transportation industry, which is already grappling with the current fuel prices and other economic uncertainties.

“For example we charge Sh50 up to a particular point, if you ask a customer to part with Sh70 due to petrol prices hike, they might refuse and bargain but sisi hatuwezi enda kubargain kwa petrol station,’’ regretted Enock Ojiambo partly in Swahili.

Minority leader in the National Assembly and the Ugunja MP Opiyo Wandayi earlier warned Kenya Kwanza regime during the debate on the Finance Bill that their popularity would decline alarming if the bill was passed.

“If by any chance and God forbid that this Bill is passed to increase VAT on petroleum to 16 percent, it will mark the fall of this regime,’’ Mr Wandaiyi said on Wednesday during the proceedings.

The government, however, says the bill was necessary to stabilize the economy that they argue was in bad shape when they assumed office.

Courtesy ; K. N. A