President Uhuru Kenyatta has proposed a reduction of VAT on petroleum products from 16 percent to 8 percent following the outcry from the public.
During the Friday briefing at State House, Uhuru said the price of petrol in Nairobi will be reduced from Sh127 to Sh118 and diesel from Sh115 to Sh107.
“I spent the last few days listening to views and it is clear that you are all concerned with rising petrol prices, ” the president said.
In his address, Uhuru listed a number development projects since the Jubilee administration took over in 2013, among them is the Standard Gauge Railway, maternal care, free primary education, free public day secondary school education and the availability of text books.
“The purpose of the new taxes was simple, we have to pay for the new constitutional order. This costs money,” held the President, defending his decision to reject the Finance Bill 2018.
“I want to assure Kenyans that their taxes will be used well. I have increased funding to Judiciary, to ODPP and other investigative agencies, ” added the president.
He warned traders against taking advantage of Kenyans on the new VAT rates by raising prices of commodities.
“Just as business owners took the new VAT rates as an opportunity to increase the cost of goods, I expect them not to take advantage of Kenyans,.” the head of state noted.
Last evening the President reviewed and returned to Parliament the Finance Bill 2018 forcing the National Assembly Speaker Justin Muturi to call for a special sitting of the House on September 18 and 20 to discuss on matters in hand.
The House will, among other matters, debate on the President’s reservations on the Bill.