KENYANS MUST RESIST VAT ON FUEL
Matatu owners have threatened to raise fares by between KShs 10 and KShs 30 depending on the route if government implements VAT on fuel prices in September.
Implementation of the tax will see a litter of petrol rise to KShs 130 in Nairobi and even KShs 150 per litre in some towns.
Minimum peak fares on most routes will be above KShs 100 one way. Kenya fuel taxes are possibly the highest in the world with current tax at KShs 39 per litre of petrol.
To raise the taxes to almost KShs 50 per litre is not economically feasible. The government hopes to raise KShs 71 Billion from the VAT on fuel.
This is shortsighted as raising tax rates will not necessarily translate to higher revenues. The impact on an already weak economy will be devastating. Fuel is a production input not a luxury.
The government must do away with this idea immediately. Parliament must stop it. We must RESIST the madness. COTU should call a nationwide strike within seven days of implementation of the tax.
If the government is broke, let it pursue those who stole public money.