Arati demands suspension of VAT Act in bid to lower fuel costs

Simba Arati

Dagoretti North MP Simba Arati speaks during a burial in Bomachoge Constituency, Kisii County, on February 1, 2021.

Photo credit: Ondari Ogega | Nation Media Group

What you need to know:

  • Dagoretti North MP Simba Arati has called for suspension of value added tax (VAT) Act to stabilise fuel prices and revision of the formula used in setting prices and the tax regime.

Pressure is mounting for the government to lower fuel prices following a huge uproar caused by the latest increase, with politicians joining calls for an urgent review.

Dagoretti North MP Simba Arati has called for suspension of value added tax (VAT) Act to stabilise fuel prices and revision of the formula used in setting prices and the tax regime.

“We must be sensitive to the times we are living in,” said the ODM lawmaker, announcing that he will table an adjournment motion tomorrow at the National Assembly to prompt the House to discuss the fuel price crisis in the country.

The National Assembly resumes Monday from a one-month-long.

“We want to start a conversation that is people-centred. I have been having talks with my constituents, most of whom use kerosene and diesel on a daily basis. It is worrying and we must do something. As the people’s representatives, we cannot just sit back,” he said.

In the Senate, Speaker Kenneth Lusaka directed Energy Cabinet Secretary Charles Keter and his Petroleum and Mining counterpart John Munyes to appear before the House to explain the sky-rocketing prices.

DP Ruto hits out at State over fuel price hike

Deputy President William Ruto Sunday said the fuel price increase will result in a general rise in the cost of living and urged the Ministry of Energy to work with relevant agencies and parliamentary committees to address the issue.

Orange Democratic Movement party leader Raila Odinga said there was need to cushion ordinary Kenyans who were already reeling from the economic shocks brought about by the Covid-19 pandemic.

Amani National Congress (ANC) party leader Musalia Mudavadi criticised the government for being insensitive to the economic hardships Kenyans are going through, saying, the decision by the Energy and Petroleum Regulatory Authority to increase prices for petrol and kerosene is punitive to a population that is going through economic hardships. Public transport operators have announced that they will increase fares by between 10 and 20 percent. The Central Organisation of Trade Unions (Cotu) has similarly protested against the increment.

“We cannot have a country where Kenyans panic every thirteenth day of the month over fuel prices. Let us put politics aside and discuss this issue once and for all,” said Mr Arati.