Kenyans react angrily to 16pc VAT hike on petroleum products

Thirdway Alliance leader Ekuru Aukot. Dr Aukot asked all Kenyans to park their cars, motorcycles and stop using matatus in protest of the high fuel prices. PHOTO | JEFF ANGOTE | NATION MEDIA GROUP

What you need to know:

  • John Njiraini advised importers, depots, distributors and retailers, including pump stations, to charge, account and submit returns on the same to KRA by 20th of October.
  • Dr Ekuru Aukot asked all Kenyans to park their cars, motorcycles and stop using matatus in protest of the high fuel prices.

Kenyans on social media on Saturday reacted angrily to the government’s decision to effect 16 per cent VAT hike on fuel setting stage for increase in cost of living.

Under the hashtag #PunguzaBeiYaMafuta #AmendVATAct #PunguzaMizigo, Kenyans expressed their disappointment over failure by the government to address the problem of high taxes despite protests.

Former presidential candidate Dr Ekuru Aukot tweeted: “We are asking all Kenyans starting today to park their cars, motorcycles and stop using matatus in protest of the high fuel prices as a result of Rotich imposing 16 per cent VAT on petroleum products. Let us all bike to our destinations.”

Ciku Munuku @CikuMunuku; “ With CS Rotich at Treasury, it is clear President @UKenyatta has no friends left. We say No to VAT on petroleum products! Mr President why should Wanjiku pay for the crimes of the corrupt and inefficient? Please plug the budget deficit without punishing Wanjiku.”

EXPLOITATIVE

Abraham Mutai @ItsMutai : “ Dear @Ukenyatta, @KanzeDena, @NziokaWaita, @StateHouseKenya. This fuel regime is exploitative. It is oppression. It is repressive. Why would Kenyans suffer and no word from you? Why are we like this? You guys acting like you are not seeing these tweets?

@ItsMutai : “ Kenyans, I will not lie to you. I will say it the way it is. Uganda and Tanzania are laying Sh103 and Sh100 but Kenya is paying Sh113 and government is fighting to make it Sh130. This is robbery. It is theft @UKenyatta, is it cartels or Kenyans? Choose.“

AkwapiKE @AkwapiKE tweeted: “Dear @UKenyatta, do you mean hiking the price of fuel is the only way to raise the money required to fund our budget The first thing should be slashing the MPs salary.”

ADVISED IMPORTERS

Consumers Association @Consumers_Kenya tweeted: “ 16 per cent VAT on petroleum products is a massive pain to the already unbearable living standards for many. Let government seal the gaps in tax evasions that's robbing Kenyans billions.”

Thuo Kimani @ThuoKimani1: “ I know @OkiyaOmtatah will go to court for the sake of Kenyans. He is the real Attorney General of the people of Kenya.

Kenya Revenue Authority announced on Saturday that the new taxes would take effect immediately.

FINANCE ACT

KRA Commissioner-general John Njiraini in a statement said : “The changes are contained in the Finance Act 2013 which extended the exemption for three years. Further, the exemption was extended by two more years under the Finance Act 2016. Consequently, the VAT charge on petroleum products has now come into effect.”

He advised importers, depots, distributors and retailers, including pump stations, to charge, account and submit returns on the same to KRA by 20th of the succeeding month.

“KRA has instituted measures to support oil industry players in complying with the law,” said Mr Njiraini.