Nairobi,KENYA:Nasa MPs have resolved to support president Kenyatta’s proposed 8% fuel levy.
The parliamentary group under the chairmanship of opposition chief Raila Odinga In a statement issued on Tuesday by National Assembly chief Whip, Junet Mohammed said that it will support the bill which will be implemented for one year even though Kenyans feel the pinch with the economic hard times.
“We recognize and appreciate that there was bilateral support on our attempt to remove VAT altogether and the President was able to meet us halfway, lowering the tax from 16 percent to 8 percent. NASA therefore offers its conditional support for the initiative to cut VAT from the initial 16 per cent to 8 per cent.”Junet said
“We see that cut being in line with our earlier attempt in the National Assembly to have the VAT scrapped altogether. Our support is however conditional. We offer support for the VAT for a period of one year.” He added
Junet said that NASA is making certain key proposals to the government so that they agree by sitting down and negotiating the extension of VAT for another year if necessary.
“NASA believes that if these proposals are implemented, there will be no need for the extension of VAT beyond one year.” He indicated in a statement
However, he cautioned that if nothing is done on these proposals, NASA will move a motion in the next budget to scrap VAT on fuel entirely.
Among other proposals include austerity measures by the government which include the elimination of extravagance and All public expenditure should be economical and be sensitive about the harsh financial times.
Parliament is scheduled for a special sitting on the matter which is due on Tuesday afternoon.