Uhuru's stern warning to matatu owners after slashing VAT on fuel

Some operators have hiked fares over the VAT tax fuel


President Kenyatta warned that they should not take advantage and increase fares beyond those recommended by the National Transport and Safety Authority (NTSA).

The Head of State warned that any transporter who will increase the fares beyond the recommended ones will lose their PSV licences.

The president said this during a Parliamentary Group meeting on Tuesday at State House, Nairobi which was attended by Deputy President William Ruto, Secretary General Hon. Raphael Tuju and the Jubilee Parliamentary leadership.

Pledged support

During the special meeting, the Jubilee Parliamentarians agreed to support President Kenyatta’s proposal to reduce VAT on petroleum products to 8 per cent.

The PG meeting also unanimously agreed that there should be budgetary cuts to accommodate the reduction in VAT.

The cuts will be across the board where citizens will make a contribution through the 8 per cent VAT, while the government, Parliament and county governments contribute through reduction in budgetary allocations.

“These budget cuts ask of us in government that we tighten our belts. It also ensures that the sacrifices made by tax-compliant Kenyans are matched by discipline,” Kenyatta stated.


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