Treasury Cabinet Secretary Henry Rotich on Friday stood his ground maintaining that that the 16 percent fuel tax will be implemented on September 1 per the law.
CS Rotich's directive will see the cost of fuel prices increase effectively from Friday midnight.
Rotich stated that the move to suspend implementation of fuel tax by two years as proposed by Parliament earlier in the week was null and void.
The implementation of the Bill was in line with agreements with the International Monetary Fund.
In 2016, it was agreed that the government would do away with tax exemptions as part of a plan to grow revenues, reduce budget deficits and slow down debt.
On Wednesday, Parliament suspended the implementation of the new Value Added Tax (VAT) on petroleum products following a public uproar.
The amendment to the Finance Bill 2018, moved by National Assembly Minority Whip Junet Mohammed, was meant to cushion Kenyans from the high cost of living.
National Assembly Minority Leader John Mbadi stated the implementation of the 16 percent VAT should be shelved forever.
“We need to postpone the tax for another two years but the House need to decide after this to do away with the tax altogether,” Mbadi remarked.
The Suba South MP stated that implementing the tax would have occasioned an increase in the price of commodities by at least more than 10 percent further making life harder for most Kenyans.
“The transport cost would have risen by over 20 per cent. This is an amendment this House must support,” he added.
COTU Secretary General Francis Atwoli and motorists had protested the tax, threatening to resist implementation of the Bill.
