The National Super Alliance (NASA) has offered conditional support to President Kenyatta’s memorandum to Parliament cutting VAT on fuel from 16 percent to eight percent.
In a parliamentary group meeting at Orange House chaired by Raila Odinga, the opposition resolved to support the tax, which is set to substantially raise the cost of living for one year.
The Tuesday morning statement came just hours before a special sitting of the National Assembly to debate Mr Kenyatta’s reservations.
“In light of the need to address the suffering of the people while ensuring that development is also delivered, we recognise and appreciate that there was bilateral support for our attempt to remove VAT altogether and the president was able to meet us half way by lowering the tax from 16 to 8 percent,” the MPs said in a joint statement read by National Assembly Minority Whip Junet Mohammed.
The meeting was attended by lawmakers from NASA allied parties, Raila Odinga’s ODM, Moses Wetangula’s FORD Kenya and Kalonzo Musyoka’s Wiper.
The coalition, however, wants the government to eliminate wastage and be economical with the resources.
On Friday last week, President Kenyatta announced that he had rejected the bill deferring implementation of the tax until 2020 and slashed the 16 percent tax by 50 percent.