President William Ruto's proposal to reinstate the 16 per cent value-added tax on petroleum products has exposed his double speak amid a looming storm. However, during President Ruto's campaigns, he promised to address the high cost of living by fixing heavy taxation on Kenyans whom he said were being overtaxed. The move by Ruto's Kenya Kwanza administration could evoke memories of a parliamentary battle in 2018 and 2021 when Uhuru vetoed MPs'push to defer 16 per cent VAT tax for two years. At the time a transitional clause, which VAT-exempted petroleum products for two years, had expired and MPs needed to either defer or allow it to come into effect. President Ruto could be walking the same dreaded path as he seeks to raise taxes on petroleum products with the opposition expected to resist the move.
Source: The Star May 08, 2023 09:10 UTC