President Uhuru Kenyatta has signed into law the Finance Bill 2018 which was passed by Parliament yesterday during a chaotic session.
The President says he will ensure a proper utilization of the taxes by up scaling the war on corruption.
This even as MPs opposed to the bill threatened to move to court to stop the implementation of the 8% VAT on petroleum products.
The National Assembly was a theatre of drama last evening, the Presidential memorandum on the Finance Bill 2018 the cause of the chaos as a section of Mps sought to veto the proposals.
And despite public outcry and threats by the Mps to seek redress in court, President Uhuru Kenyatta has signed into law the Bill that effectively reduces the VAT on fuel by 8%.
The law will however be punitive to mobile money and bank transactions with a 20% levy on every transaction.
The Act also imposes a 15 per cent excise duty on telephone and internet data services in what is going to make expensive making calls and using mobile data.
The price of Kerosene is also likely to go up with the introduction of an adulteration levy to harmonize the price of kerosene with that of diesel. Employees will also now contribute 1.5 % of their salary to the National Housing Development Fund that will actualize President Uhuru Kenyatta’s housing agenda.
However, a person not eligible for affordable housing according to the Act, upon expiry of 15 years from the date of commencement of the contributions, or at retirement, shall have their monies transferred to a pension scheme registered by the Retirement Benefits Authority.
The President in signing the Bill, said he will upscale the war on corruption to protect the taxes from corrupt individuals and wastage