Treasury waiting for court order stopping 16% petroleum VAT implementation

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CAS Nelson Gaichuhie during the committee hearing./PHOTO COURTESY

Nairobi, KENYA: You are probably still paying high fuel prices because treasury has not received the court order stopping the implementation of the 16% VAT petroleum levy.

While appearing before Senate committee on energy, Treasury Chief Administrative Secretary, Nelson Gaichuhie, said they have not been served with a court order on the stoppage of implementation of 16 percent fuel levy.

Gaichuhie insisted that they have not been officially served with the orders, almost a week after High Court stopped the implementation to allow the president to either assent to or reject the revised Finance Act,2013 that parliament passed late last month.

Gaichuhie insisted that they must be served through the normal process.

“We are not ignoring the courts but we have not been served. Until we are served, we can’t talk about it,” Gachuhie said.

He indicated that through the implementation, the country will be collecting sh.35 billion monthly warning that losing such an amount will affect service delivery on matters of security and free primary education.

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