Coast passengers to pay Sh50 more as fuel levy looms

Matatus parked at the Kencom bus station. /FILE
Matatus parked at the Kencom bus station. /FILE

Matatu operators in the Coast have announced an increase in fair owing to government's proposed 16 per cent levy on fuel products.

Matatu owners association Coast coordinator Salim Mbarak said starting September 1, there will be additional Sh10 and Sh50 for the county and inter-counties services respectively.

Parliament passed the Value Added Tax in 2013, introducing a tax on fuel products.

Its implementation was, however, given a three-year grace period to September 2016. The government further extended the period by two years to September this year after Treasury raised the Road Maintenance Levy on each litre of petrol and diesel to Sh18 in the last budget statement.

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But the plan has since been met with resistance, economists stating it will increase the cost of living against a stagnant income.

March this year, National Treasury defended the plan to introduce the tax on petroleum products saying it will aid collection of about Sh34 billion revenue annually.

Treasury said the International Monetary Fund has been pressing Kenya to revoke the tax exemption on all petroleum products for the country to raise more revenue to address the budget deficit and reduce the national debt.

Mbarak said the last fair review was done in 2014.

According to the new charges seen by the Star, commuters plying Mtwapa-GPO route will now pay Sh90.

The routes of Kiembeni-Ferry/Docks will pay Sh80, Bamburi-Docks/Ferry/King'orani (Sh70), Reef-Mwembe Tayari (Sh60) and Mshomoroni-Mwambe Tayari (Sh60) have also been affected.

Commuters headed to either Ferry or Docks from Magongo, Migadini, Portreitz, Jomvu, Mikindani will pay Sh70.

Those from Miritini to Mwembe Tayari will part with Sh80 and Tudor-Docks/Ferry commuters will pay Sh40.

Mombasa-Malindi route will range between Sh350-Sh450.

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