The treasury’s CS said that the 16% fuel would be be implemented because that was the law.
Members of parliament had postponed the fuel tax for two years after a public outcry that a rise in fuel would amount to an increase of basic commodities. Consumer federation of Kenya (COFEK) also raised the same concerns on the price of foodstuffs.
The amendment was moved by Minority chief whip Junet Mohamed.
“The House has this afternoon approved an amendment to Clause 18 of the Finance Bill, 2018, sponsored by Minority Whip Junet Mohammed, suspending the implementation of 16% VAT on fuel, which was to take effect on 1st Sept. 2018, for a period of 2 years, citing the high cost of living,” read a statement from Parliament
The international Monetary fund (IMF) has been piling pressure on the government to end the suspension and raise its revenues and reduce budget deficits while slowing down spiralling debt.
The Matatu owners association had already threatened to hike prices by 20% if the government goes ahead to implement the tax.
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