Finance Committee Considers Removing Motor Vehicle Tax and 3 Others After Kenyans Complaints

Motorists stranded On a stand still Traffic Jam Towards The CBD Along Busy Thika super Highway in Nairobi on Monday, November 11, 2019.
Motorists stranded On a standstill Traffic Jam Towards The CBD Along Busy Thika super Highway in Nairobi on Monday, November 11, 2019.
Simon Kiragu
Kenyans.co.ke

The Parliamentary Budget Committee led by Molo MP Kuria Kimani is considering removing the much-deplored Motor Vehicle Tax in the Finance Bill 2024.

According to reports, the committee is considering throwing away the tax alongside eco levy, excise duty on bread and vegetable oil, and money transfer and internet tax.

Per some members of the committee who spoke to Citizen TV, the MPs were considering the changes after Kenyans unanimously rejected the proposed taxes during the concluded public participation exercise across the country.

The MPs, who are currently in Naivasha for a retreat, noted that they will include the amendments in their report set to be presented before Parliament tomorrow, Tuesday, June 18.

Molo MP Kuria Kimani at a committee hearing on the Finance Bill 2024 on June 4, 2024.
Molo MP Kuria Kimani at a committee hearing on the Finance Bill 2024 on June 4, 2024.
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Parliament of Kenya

If the amendments are implemented, Kenyans will not be forced to pay a yearly tax for their motor vehicles or face higher prices of basic commodities such as bread and vegetable oil.

Additionally, if the eco levy is thrown away, the prices of certain commodities such as smartphones, loudspeakers, microphones, earphones, monitors, projectors, ATMs, calculating machines and cash registers.

The motor vehicle tax was expected to target every Kenyan who owns a car. The bill had proposed a fee equivalent to 2.5 per cent of the car's value if the tax was introduced.

Eco levy was going to affect manufacturers and importers in the country where the price would have been increased for the consumers. Other items targeted by the levy were batteries, plastic packing bags, and rubber tyres for vehicles, motorbikes and bicycles.

These increased taxes contained in the Finance Bill 2024 were introduced to increase the country's revenue and have faced strong opposition from Kenyans and a section of leaders.

Notably, a section of Kenyans is expected to hold peaceful demonstrations outside Parliament tomorrow as the committee presents its report.

MPs allied to the ruling party such as Kikuyu MP Kimani Ichung'wah and his Kiharu counterpart Ndindi Nyoro had in separate events assured Kenyans that their views would be considered.

"I want to assure all Kenyans who have given their views that as leaders, we respect them," the Budget and Appropriation Committee chair stated.

Several leaders, especially from the opposition, have announced that they would vote no in Parliament to reject the bill. 

Budget and Appropriations Committee led by Kiharu MP Ndindi Nyoro.
Kiharu MP Ndindi Nyoro (centre) chairing the Budget and Appropriations Committee.
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National Assembly Committees