Matatu Owners Association have announced new fare prices for Nairobi commuters after government announced that from September a 16% Value Added Tax will be introduced.
The chairman of the association Simon Kimutai wondered why the government had decided to increase tax collection by targeting fuel prices, he opined that the taxman KRA should target those who evade paying ta as a means of bulging their revenue collection.
“Additional fares are painful to commuters but the increase in fare prices has to take effect because taxation of fuel translates to an added cost to public service vehicles operators,” Kimutai said.
Mr. Kimutai assured Nairobians that the increase will be ‘reasonable’.
The move to increase VAT on fuel has also been opposed by the Consumers Federation of Kenya (COFEK) who termed it unconstitutional.
“It does not meet the threshold of Article 10 of the Constitution. If allowed, the move will put the taxation levels on a liter of petrol to a staggering 70 percent,” COFEK Secretary General Stephen Mutoro opposed.