Treasury Cabinet Secretary Henry Rotich has agreed to soften his stand regarding the infamous 16% VAT tax on fuel.
Speaking to journalists on Thursday afternoon, Rotich announced that the government was actively reviewing the tax with an aim of realizing a plausible alternative.
In his statement, the CS indicated that government machinery was in the very stages of effecting a decision that could identify with the desires of Kenyans.
“We are looking at options of reviewing it and that discussion is at final stages. I can’t give you any direction at the moment,” Mr Rotich remarked.
The 16% VAT resulted in a sharp increase to Kshs127 per litre for petrol in Nairobi while diesel shot up to Ksh115.
Consequently, the public transport sector equally shored up bus fare in a move that raised the average cost of living.
Many pundits have trained their guns on the treasury for pushing the cost of living to the edge in the face of rising unemployment and a hardening business environment.
In response to the steps taken by the Treasury, Parliament passed an amendment bill seeking to stop the effecting of the new levy.
President Uhuru Kenyatta is, however, yet to assent to the bill or resend it back to Parliament.
The High Court, sitting in Bungoma, also directed the Energy Regulatory Commission (ERC) and Kenya Revenue Authority (KRA) to halt the implementation of the new taxation system.
Treasury, however, stated that they were yet to formally receive the court order.
