Kenyans warned to brave themselves for the worst
The President’s quest to reinstate an unpopular fuel tax former president was forced to shelve revives the politics that stalks petroleum pricing and exposes doublespeak by other politicians on the matter of immense public interest.
Beginning July 1, Kenyans have been warned to brace for higher living costs should a proposal in the Finance Bill 2023 to subject petroleum products to sixteen percent VAT, up from the current 8%, be implemented.
National Assembly Majority Leader and Budget Committee Chairman will be tasked to champion the Bill in the House, essentially whipping ruling coalition members to pass the unpopular law they vehemently opposed in 2021.
Audit firm KPMG, warns the proposal will impact the prices of transport and cost of production thus increasing the inflation pressure on the economy.
President and his administration is closely following former President routes by bringing up the issue of increasing VAT on fuel from the current 8%.
The leaders then including allies to President RutoPresident Ruto who was the Deputy President had rejected the proposal to raise the taxes on petroleum fuel citing that they cannot afford to burden the people by imposing VAT on oil products. The pro-Ruto camp is 2021 was boldly vocal against the additional taxes on fuel.
Before assuming office August last year, President William RutoPresident William Ruto during his campaign had promised to lower the cost of living among several other things. However, ten months down the line the president seems to be making life more difficult and unbearable to Kenyans who are struggling to make ends meet.
By increasing the taxation on fuel by eight percent, it basically means that the prices of all commodities will double or even triple in worst case scenario. Transportation costs will increase greatly affecting businesses.
This will eventually slow down the recovery of economy. Kenyans warned to brave themselves for the worst.
