President Uhuru Kenyatta has proposed a fuel tax cut from 16 to eight per cent, resulting into the price of petrol dropping from Sh127 to Sh118 and that of diesel from Sh115 to Sh107.
The president announced this during a national address on Friday, on matters including Finance Bill, 2018, which he reviewed and returned to Parliament on Thursday evening.
The president asked Parliament to cut the fuel Value Added Tax (VAT) by 50 per cent and said he expects the relevant authorities ” not to take advantage of weary Kenyans and to lower the prices without any delay”.
Mr Kenyatta rejected the Bill that sought to raise Sh1 trillion in revenue, including Sh70 billion from the tax on petroleum.The National Assembly will now discuss the proposals in two special sittings on Tuesday and Thursday next week.
The head of state also assured Kenyans that their taxes will be well utilized in ensuring that each citizen lives and works in a conclusive environment.
“I have spent the last few days listening to a wide section of views and it is clear that you are all troubled by the effect of rise of petrol and its impact. I have heard and understand your concerns,” he said.
“Your taxes will be used well. I have also proposed to increase resources available to fight corruption. Funding to the judiciary to speed up corruption cases .”
Uhuru spoke on the matter for the first time since his return from China.