President Uhuru Kenyatta has proposed a 50% cut of the 16% VAT tax on petroleum products a day after he returned to Parliament the Finance B*** 2018, which had sought to delay its implementation by a further two years.
The President said if Parliament accepts the proposal to cut the tax to 8%, the price of petrol w*** drop from Ksh 127 to Ksh 118 while ****el w*** drop from Ksh 115 to Ksh 107.
Uhuru justif*** the need to tax petroleum products, saying his administration needs the money to support the big government put in place by the 2010 Cons***ution as well as finance major infrastructure projects.
“Your taxes are paying for clear tangible progress,” said Uhuru citing progress that has been achieved since 2013 including the construction of major roads, the Mombasa-Nairobi Standard Gauge Railway and modernisation of the Jomo Kenyatta International Airport, which has resulted in aut**risation of direct flights to the United States.
**wever, he said the measure means the government w*** st*** not bridge the 2018/2019 budget deficit and proposed a tightening of belts as he asked MPs to approve a wide range of austerity measures across government while increasing funding to the Judiciary and agencies tasked with the *** against **********.
“But we st*** face a financing gap. This measure w*** not suffice to balance our budget, as required by law. Therefore I have also proposed wide-ranging cuts in spending as well as austerity measures across all arms of government. The cuts target less essential spending, such as **spitality, foreign and domestic travel, training and seminars, and similar categories,” he said in an address to the nation from State **use, Nairobi.
“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 from all of us in the public service,” added the President.
MPs are set to **ld special sittings on Tuesday and Thursday to consider the President’s memorandum as well as a supplementary budget, according to a gazette notice by National ***embly Speaker Justin Muturi.
The National ***embly can only overturn the President’s proposals if it raises a two-thirds majority.
The President said it was his cons***utional obligation to ensure that the B*** conformed to the best interests of Kenyans.
“As your President, I have a cons***utional duty to ensure that legislative instruments presented for my signature conform to our national aspirations, fulf*** government’s basic obligations to our people, and are implementable,” said Uhuru.
“I must make a delicate balance between s**rt-term pain and long-term gains,” he added.
He added that has consulted widely before making the proposals contained in his memorandum to MPs.
“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.
Uhuru said his decision to boost the *** against ********** is aimed at ens****g the taxes raised by Kenyans are used prudently.
“Your taxes w*** be used well. I have also proposed to increase resources available to fight **********. I have increased funding to the judiciary to s***d up ********** cases, the Office of the Director of Public ***********s as well as the other agencies involved in investigations,” he said.
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The President also asked oil ******s to reduce the price of products wit**ut delay, the same way they implemented the hike.
“I expect them not to take advantage of Kenyans and to lower their prices wit**ut any delays,” he said.
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