Consumer lobby opposes VAT charge on fuel - 6 months ago, 10 Aug 13:35
A consumer lobby now wants the government to shelve the implementation of a 16 per cent Value Added Tax (VAT) on petroleum products in line with a deal Kenya made with the International Monetary Fund (IMF) two years ago.
The Consumer Federation of Kenya (Cofek) secretary-general Stephen Mutoro said on Friday the new tax if effected would lead to a spike in cost of living affecting low income consumers the most.
“By dint of this proposed measure, the cost of travelling, transport of goods, food and general inflation will radically rise,” said Mr Mutoro in a statement.
“Needless to mention, this would occasion shrinking of consumer spending and with it, unemployment and flooding of counterfeit goods shall be enhanced.”
Motorists in Nairobi are expected to pay a record price of Sh130.15 per litre of petrol, mostly consumed by private cars, or about Sh17.9 more from next month as petroleum products start attracting 16 ...
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