In Summary
  • Mr Duale said he had no doubt that the president would give valid reasons for returning the Bill.

  • Mr Duale asked the players in the industry to reduce the prices should it be signed into law.

  • Minority Leader John Mbadi is of the view that the VAT on petroleum products is ill-advised.

  • Two Coast legislators want the government to stop mega development projects to ease the economic burden on Kenyans.

National Assembly Majority Leader Aden Duale is of the view that taxes must be paid for the country to develop.

The Garissa Town MP said this concerning Finance Bill, 2018, which President Uhuru Kenyatta returned to Parliament on Thursday evening for a review.

'GOOD MOVE'

In an address to the nation from State House in Nairobi County on Friday, the president said that in a memorandum, he has proposed that the tax rate be halved.

Mr Duale said he had no doubt that the president would give valid reasons for returning the Bill.

“Part of the memorandum is returning to the House,” he told the Nation in an interview, adding this is a good move.

Mr Duale asked the players in the industry to reduce the prices should the Bill be signed into law.

"I hope the other stakeholders and the transporters in this trade will reciprocate once the House ceases of the matter on Tuesday and Thursday next week. Hopefully, the President will sign into law the new amended VAT of eight per cent," he said.

But he added: "It is very painful because at the same time we have to pay taxes for the development and transformation of our country."

ECONOMIC DISASTER

Minority Leader John Mbadi is of the view that the VAT on petroleum products is ill-advised.

Mr Mbadi, who is Suba South MP, added that the proposal for an eight per cent rate is "just to please the public" and is disastrous to the economy.

“This is not about numbers. It will still have a ripple effect on fares. We can see that fares have already gone up by 50 or 100 per cent in some of our towns despite the increase of the levy to 16 per cent. This doesn’t make economic sense. By putting the VAT at eight per cent, the president means that he wants it charged."

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