MPs summoned to State House ahead of special sitting over fuel VAT

A section of MPs have vowed to shoot down President Uhuru Kenyatta’s memorandum on the Finance Bill 2018 which proposes to reduce value added tax imposed on petroleum products from 16 per cent to 8 per cent.

The legislators who are expected to reconvene for three special sittings scheduled for Tuesday and Thursday argue that Kenyans are overtaxed and therefore the VAT imposed on fuel should be removed.

The Jubilee MPs have been summoned to State House Tuesday morning while ODM MPs will similarly meet at Orange house before the afternoon sitting.

In the memorandum the President insists that the development projects being implemented by government require financing therefore a value added tax of 8 per cent should be imposed which is a 50 percent reduction of what was implemented by treasury on the first of this month.

In addition to reducing the fuel VAT from 16 per cent to 8 per cent, the president also seeks to slash the budget allocation of national government constituency development fund and affirmative fund.

A proposal that has angered the MPs who feel the president is overstepping his mandate by attempting to manipulate the national budget process.

The lawmakers instead want the president to suspend some of his big 4 agenda projects as part of austerity measures.

But the hard stance by MPs will have to survive a vote in the National Assembly where at least a two thirds majority is required to overturn the president’s veto.

 

  

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