Matatu Owners Association Chairman, Simon Kimutai confirmed that matatu fares are bound to “reasonably” increase to cover for the cost of increased levy on fuel products.
This decision comes after the government introduced a 16% VAT on fuel products taking effect on 1 September.
Mr Kimutai confirmed that the government is using the new levies to collect more revenue instead of acting on the tax evaders.
“Additional fares are painful to commuters but the increase in fare prices has to take effect because taxation of fuel translates to an added cost to public service vehicles operators,” Kimutai said in a statement.
Kenyans who use public transport will have to pay more within a range of an additional Sh10 and Sh20 depending on the distance covered.
According to Consumers Federation of Kenya (COFEK), the cost of Petroleum fuel is set to rise to Sh130 per litre. This increase will put the taxation levels on a litre of petrol to 70%, which is against the constitution.
The increased tax levy is in line with Kenya’s promise to the International Monetary Fund (IMF) two years ago.
The increase will affect the common mwananchi as cost of living is consequently bound to rise as well.
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