Thu. May 30th, 2024

Kenyan MPs have voted in favour of doubling of the value added tax (VAT) levied on fuel to 16%, which is expected to add to the rising cost of living.

On Wednesday, ruling party coalition MPs pushed through the proposal with 184 approving the clause within new finance bill, while 88 lawmakers opposed it.

The government, which is looking to raise about 50bn Kenyan shillings ($356m; £279m) from the additional tax, has defended the move as necessary amid a rising debt burden.

But the leader of the opposition MPs in parliament said it was punitive, terming the decision to push ahead with the fuel tax clause as “the saddest day in the history of this country”.

This week, Kenya’s parliament has been combing through clauses within the unpopular finance bill and considering and voting on amendments.

Besides the fuel tax, some of the controversial proposals include a housing fund levy to be paid by all salaried workers and an increase in taxes for social media influencers.

By Joy

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