We were Duped by Government to Pass 16% Fuel Tax Law

Members of Parliament (MP) who were involved in passing the fuel tax bill now claim they were hoodwinked into doing it.

Kieni MP Kanini Kega, who was among those in parliament who passed the bill, claims they were misled into passing the VAT Act of 2013 that prescribed the 16% tax on petroleum prices.

However, the MPs further explain the implementation of the bill was suspended by three years in anticipation of developments in oil exploration.

“In 2013, we were informed that we would begin producing our own oil in Turkana and the economy would improve, as fuel prices would be low. This has not happened,” reported Kega.

MPs Junet Mohammed (Suna East), Kimani Ichung’wa (Kikuyu) and Opiyo Wandayi (Ugunja) claimed the House was waiting for President Uhuru Kenyatta to decide on the amendment of the Finance Bill 2018 that recommended suspension of the tax by an additional two years.

The MPs alleged that should the president reject the change and refer the bill back to the House with a Memorandum, they would raise the requisite two-thirds majority required to override his objections.

Junet, who sponsored the amendment to Clause 18 of the bill approved by the House which saw the implementation of the tax bill deferred to 2020, lay the responsibility of protecting the citizens on President Kenyatta.

“This matter is no longer in the hands of parliament. The members made their announcement on the Bill on the floor and unanimously agreed to suspend the tax,” he noted.

Echoing his sentiments, Wandayi, who also doubles as the Public Accounts Committee chair, went on to reiterate they would veto the president’s decision in defence of the people.

Petroleum Principal Secretary Andrew Kamau on Tuesday explained the government’s action was within the law and could only be reversed if the Finance Bill was assented to by the president.