Dire economic times loom after MPs snub pleas for a lean budget
Kenyans are facing tough times after Parliament passed the budget proposal to double Value Added Tax on fuel from eight to 16 percent.
On Wednesday, the National Assembly passed the controversial proposal in the Finance Bill 2023. 184 MPs voted for the increase in VAT against 84 who opposed the amendment.
Members of Parliament allied to the Azimio coalition, who opposed the proposal to increase the VAT on fuel to 16 percent, argued that the move would adversely affect the cost of living.
Immediately after the vote, Kenyans took to social media to bash MPs who voted in favour of increasing Value Added Tax (VAT) on petroleum products by, accusing them of insentivity to the plight of their constituents.
Among prominent Kenyans who lashed out at the government and Parliament is businessman Buzeki Kiprop Bundotich of the Buzeki Group, who also announced that his company would downsize to save on costs. He further noted that the Kenya Kwanza administration has made it tough for truckers to operate.
”Due to the rise in VAT on fuel from 8% to 16%, we are now officially downsizing with immediate effect. The current administration seems to lack a plan for job creation and is solely focused on collecting revenue for expenditure. All old trucks, including those with Euro 3 and below, will be sent to the scrap yard,” Buzeki stated.
Minority leader Opiyo Wandayi and Minority Whip Junet Mohamed cautioned that passing the proposal to increase VAT on fuel will be devastating for Kenyan households already feeling the brunt of inflation and economic hardships within the country.
”If you increase VAT on fuel from eight to 16 percent will make life unbearable for Kenyans. Let us all agree to remove this increase in tax on petroleum products. Otherwise, I promise you today that there will be a revolution in this country,” the Suna East MP stated.
His sentiments were echoed by the House Minority Leader Opiyo Wandayi, who opined that the increase of VAT on fuel would end the Kenya Kwanza government.
”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,” he said.
Majority Leader Kimani Ichung’wah backed the Bill and accused retired President Uhuru Kenyatta and his handshake partner Raila Odinga of overseeing the plunder of the fuel subsidies they introduced.
“Without government-to-government intervention by the government, the cost of fuel would be above Sh200. You can have varying interest rates of VAT, which can become problematic. The problem we have now is because we have varying interest rates for different commodities, which we must harmonise,” Ichungwa said.
Githunguri MP Gathoni Wamuchomba once again reiterated her position that despite being elected under the ruling UDA Party, she would not support any legislation that would burden Kenyans.
“Life is unbearable as we speak to our citizens. We cannot afford to add more levy on fuel because fuel is a catalyst of everything from production to marketing and to the welfare of our people. Right now our people are suffering and production, especially in our rural areas is going to go to zero if we add tax on fuel,” said Wamuchomba.
“ If you want to revamp the economy of this country adding tax on fuel is not the solution. The solution is empowering our farmers who produce crops that bring donors to this country,” she said before pronouncing her vote as ‘no’.
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