Ichungwa shocks no one as he defends increase of fuel VAT
Kenyans are set to face higher fuel prices after a majority of Members of Parliament approved a proposal to increase the Value Added Tax (VAT) on fuel from 8% to 16%.
The decision was made after a heated debate in Parliament, with Azimio and Kenya Kwanza MPs divided on the issue. The approval of the VAT increase means that fuel prices could rise by more than Sh10 per litre.
And when asked about this fact, Kimani Ichungwa said,
“Our VAT rate at 16 per cent, in the region where our country is the market leader, VAT in Kenya even at 16 per cent is still the lowest. Uganda being at 18 per cent on fuel, our friends in Tanzania and Rwanda also at 18 per cent,”
This is a major blow to Kenyans, who are already struggling with the rising cost of living. The increase in fuel prices will have a ripple effect across the economy, leading to higher prices for food, transportation, and other goods and services.
The government has said that the VAT increase is necessary to raise revenue and help to finance its development plans. However, critics argue that the increase will only worsen the plight of ordinary Kenyans.
The VAT increase is the latest in a series of economic challenges facing Kenyans. In recent months, the prices of food, electricity, and other essential goods have risen sharply. This has led to widespread protests and calls for the government to take action to address the rising cost of living.
The VAT increase is likely to further fuel these protests and could lead to social unrest. The government needs to find a way to address the rising cost of living without further burdening Kenyans.
