Kenyans are staring at costly fuel after the Finance Bill 2023 clause proposing an increase of Value Added Tax (VAT) on petroleum products from 8 to 16 per cent sailed through. The proposal was retained when members of parliament voted on the amendment during the Third Reading of the Bill on Wednesday evening. A total of 184 MPs vote in favour of the proposal with 88 others opposing the increment.
The contentious clause elicited a heated debate in the House as MPs allied to the Kenya Kwanza government faced off with their counterparts from the opposition’s Azimio la Umoja – One Kenya coalition. Minority Leader Opiyo Wandayi told the House that the proposal seeking to double VAT on petroleum was punitive.
“If by any chance this clause becomes part of the bill and the VAT on fuel is increased to 16%, this will be the saddest day in the history of this country. If by any chance this Finance Bill is passed and it becomes an act of Parliament, that will mark the beginning of the fall of this regime,” Wandayi warned.
Nominated MP and ODM Party chairperson John Mbadi has accused President William Ruto of being irresponsible over his government’s move to increase Value Added Tax (VAT) on fuel from the current eight per cent to 16 per cent. This is following Wednesday’s approval of the contentious proposal in the Finance Bill, 2023 by Members of Parliament.
According to Mbadi, it is wrong for President Ruto to introduce such a proposal which will make the already high cost of living higher for Kenyans, while he campaigned on a platform of lowering it and abolishing punitive taxes.
“Even after campaigning on a platform of removing these taxes, the president comes and tells us that eight per cent is still low, we need to increase it. At a time when Kenyans are facing the worst economic crisis, I think it is irresponsible,” Mbadi said
By Hallan Emodia