COTU has threatened nationwide protest if the government implements the proposed 16 per cent Value Added Tax on petroleum products.
Secretary General Francis Atwoli said workers will not entertain poor policies by Treasury CS Henry Rotich, which he alleged to have destroyed the economy and left workers poor.
“Kenyans pockets have been dug deep and as workers, we will not continue keeping quiet and watch the Government especially Treasury CS
Henry Rotich destroy our economy through unreasonable taxes,” he said.
The government differed16 per cent VAT in the last two financial years following the outcry from the public.
“If not we shall call for a national strike of all our members and the country will come to a standstill. We will also ensure every citizen takes part in the protest to remind Rotich that he is there to serve workers,” Atwoli said.
In June 2018, during the budget statement, Treasury Cabinet Secretary Henry Rotich announced that petroleum products will start attracting 16 per cent VAT come the beginning of September 1, a move that will add about Sh17 on every litre of the commodity.
In Nairobi, this will result in an increase in petrol from sh 112.1 to Sh130 per litre, an increment of about sh 17.9.
The SG said the implementation of the proposed 16 per cent VAT on petroleum products will increase the cost of living in the country.
He added any increment on fuel will be passed on to the workers who are already heavily taxed.
“This fuel Tax will increase the cost of living and make it impossible to do business in Kenya leading to retrenchment of workers and minimize the creation of new employment as increased the cost of fuel results to diminished economic growth due to the high cost of production,” Atwoli told the Star.
“COTU (K) is warning the Government on the possible repercussions of imposing a higher tax on fuel as such would affect basic services and commodities in the long run,” Atwoli said.
He said the proposed tax is going to push the prices of fuel extremely high above the continued fuel prices increment by Energy Regulatory Commission (ERC).
“Any increment on fuel prices will have a direct impact and we expect prices of basic commodities to shoot up. This will not happen under our watch. We are tired of the increasing cost of living that is creating Poor workers as the salaries of our workers can no longer meet their large expenditure due to perverse taxing,” he said.
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