CS Rotich says solution in sight in VAT fuel standoff

There may be a ray of hope for Kenyans over the imposition of 16 per cent value added tax on fuel products after Treasury Cabinet Secretary said the government will soon find a solution over the matter.

Mr Rotich on Thursday held a two-hour closed-door meeting with the leadership of the National Assembly led by Speaker Justin Muturi, leader of majority Aden Duale, and Attorney General Paul Kihara.

Also in attendance were chairman Budget committee Kimani Ichungwa his finance counterpart Joseph Limo, Njee Muturi and Clerk of the National Assembly Michael Sialai.

Speaker Muturi told journalists that the meeting was the first in a series of meetings that would be held in the coming days in a bid to find a solution to the controversial tax that has caused public uproar since the start of its implementation on Saturday.

Mr Muturi said, without divulging more details, that the increase of VAT on fuel products was top of the agenda.

“We just want to assure you that we will address the issue. This is just the first meeting and we will have many more,” Mr Muturi said.

A source at the meeting disclosed that the leaders proposed to reduce the VAT on fuel products to 12 per cent among a raft of changes to the finance bill, but a decision was not reached as parties agreed to engage further.

Minority leader John Mbadi said last week they scheduled a meeting with the Treasury CS to iron out contentious issues in the Finance Bill such as the housing plan.

“I did not attend the meeting but I was aware of it as we scheduled it last week,” he said.