Nominated MP and ODM Party chairperson John Mbadi has accused President William Ruto of being irresponsible over his government’s move to increase Value Added Tax (VAT) on fuel from the current eight per cent to 16 per cent.
This is following Wednesday’s approval of the contentious proposal in the Finance Bill, 2023 by Members of Parliament.
A total of 184 MPs voted in favour of the VAT increase against 84 who opposed the amendment, setting the stage for what could see the cost of fuel rise by more than Ksh.10.
According to Mbadi, it is wrong for President Ruto to introduce such a proposal which will make the already high cost of living higher for Kenyans, while he campaigned on a platform of lowering it and abolishing punitive taxes.
“Even after campaigning on a platform of removing these taxes, the president comes and tells us that eight per cent is still low, we need to increase it. At a time when Kenyans are facing the worst economic crisis, I think it is irresponsible,” Mbadi said Thursday on Citizen TV’s Day Break show.
Calling Wednesday “a sad day in the National Assembly”, Mbadi said the proposal was not well thought-out and lacked public participation.
“The ripple effect is the cost of living will go up because Kenya is still heavily dependent on fossil fuel… The inflation will go up more than what we see and this was not a well thought idea,” said the nominated MP.
According to Mbadi, while President Ruto is keen on ensuring Kenya transitions to clean energy, it should be done in a manner that does threaten the economic well-being of Kenyans.
“You cannot sign climate change (deals) and move away from fossil fuel overnight. It has defeated even the most developed nations; it has to be gradual,” he said, adding, “You cannot make life so difficult and expensive for Kenyans just because you want to fulfil some treaties you signed where even public participation was not sought.”
Meanwhile, the National Assembly is currently considering several proposed amendments to the Finance Bill, 2023 that is currently at the Committee of the whole House stage before it is enacted into law.
–@AyubAbdikadir: What will be the ripple effect following the increment in VAT on fuel from 8% to 16%?
MP John Mbadi: It’s irresponsible of the President because Kenyans are facing the worst economic crisis. The cost of everything will go up #DayBreak pic.twitter.com/XQH9HZFfBU
— Citizen TV Kenya (@citizentvkenya) June 22, 2023
