Uhuru wins as NASA, Jubilee resolve to support VAT cut

President Uhuru Kenyatta and Opposition leader Raila Odinga during the March 9 handshake. The two leaders addressed their respective MPs on fuel tax on Tuesday, September 18, 2018./FILE
President Uhuru Kenyatta and Opposition leader Raila Odinga during the March 9 handshake. The two leaders addressed their respective MPs on fuel tax on Tuesday, September 18, 2018./FILE

President Uhuru Kenyatta has secured the support of both Jubilee and NASA ahead of Parliament's debate on his proposal to lower fuel tax to 8 per cent.

MPs from both camps held Parliamentary Group meetings where they resolved to support the memorandum by the President during Thursday's voting.

Ahead of the meetings, some MPs had expressed their reservations after Uhuru vetoed their earlier decision to suspend the 16 per cent VAT for another two years.

The NASA Parliamentary Group meeting was held at Orange House and chaired by ODM chief Raila Odinga.

Some 181 Jubilee MPs met at State House where Uhuru chaired the meeting, according to National Assembly Majority leader Aden Duale.

He said the legislators agreed to support the five areas that the President has reservations on regarding the Finance Bill, 2018.

NASA Chief Whip

Junet

Mohamed, in a statement, said the opposition coalition had, however, resolved to support the proposal for only one year with several conditions.

The opposition wants the government to meet its demands, if not, MPs will table a motion to scrap the entire VAT.

Some of

the demands

NASA placed on the table include

the elimination of extravagance by the government, taming the appetite for big borrowing and applying the brakes on

ambitious

infrastructural projects. NASA also wants the government to unveil a clear plan that will lead to new jobs for the unemployed and cut taxes for small businesses.

The opposition wants the government

to put more effort in the anti-corruption drive with a clear programme for ridding the country of this menace and a clear end game. It

must also initiate major tax reforms, which must include overhauling the management of Kenya Revenue Authority and the Kenya Bureau of Standards.

Last week on Friday, the President declined

to sign the Finance Bill, 2018 that was seeking to suspend the implementation of the 16

per cent

VAT on petroleum products.

Instead, he proposed that the VAT be reduced to 8

per cent.

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