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Confusion over 16% VAT on fuel

[MOA Coast region Coordinator Salim Mbarack Salim. Photo/ Maxwell Ngala]

The transport sector was on Monday morning thrown into a total perplexity over the imposed 16 percent fuel levy by the government.

The same government is however expressing even more confusion about the matter with a section of its top leaders including the Deputy President William Ruto opposing the move.

Matatu Owners Association Coast region chapter has however said that it’s yet to implement the intended fare hike after the situation went meander.

MOA Coast region Coordinator Salim Mbarack Salim said that the officials are planning a meeting with various stakeholders in the region so that they deliberate on the issue before giving out their stand on the 16 percent VAT issue on oil imported in the country.

Mbarack said that the issue has divided the country with only the treasury and Kenya Revenue Authority-KRA supporting it.

“We have not implemented any fare hike at the Coast, however we are going to meet this week to discuss about the whole issue since the pump prices have gone up.

In a statement to newsrooms Monday Evening, Mombasa Governor Ali Hassan Joho opposed the move saying that increasing pump prices will translates to high prices of almost all the basic commodities and services.

Joho said that the move will translate to an economic punishment to already struggling Kenyans who are trying to make ends meet.

Kenyans across the country felt the pinch Monday morning after most matatu operators withdrew services to protest the move by the government which imposed a 16 percent fuel levy.

Human rights organizations among them Muslims for human rights-MUHURI and Haki Africa have opposed the move urging President Uhuru Kenyatta to intervene since the fuel levy was going to overburden the already hopeless Kenyans.