Matatu owners ask KRA to cut high taxes crippling business

Matatu owners now want the Kenya Revenue Authority to cut the amount it charges in advance tax per seat of the vehicles.

Matatu Owners Association chairman Simon Kimutai on Friday said the PSVs should be charged based on the government Covid-19 regulations that a matatu can only carry 60 per cent of its capacity.

“ How does the government expect matatu operators to recover their expenses and get profit when they charge us advance tax per seat?’ he questioned.

Before the matatus start operating on the roads, the owners have to pay the Fuel levy and Transport Licensing Board fees, parking, insurance, vehicle inspection and the advance tax together.

At the moment a 33-seater matatu that carries 17 commuters pays Sh23,760 annually in advance tax while 26-seaters carrying 15 people pay Sh 18,720.

A 41-seater which now carries 25 commuters pays Sh29,520 annually while a 14-seater that now only carries nine passengers pay Sh10,080 in advance tax.

Despite having no problem paying taxes, MOA chairman Kimutai complained that the public transport sector was being overlooked while others are getting a reprieve from the government.

Kimutai told the Star that a memorandum will be delivered to KRA for them to review the advance taxes.

With Covid-19 containment measures, some matatu owners opted to redesign their vehicles where the social distance rule would be observed.

Last April, Bus Operators of Kenya Association chairman Edwin Mukabana told the Star the sector was losing  Sh2.1 billion daily. 

This was after the government introduced night curfew and ordered matatus to carry 60 per cent of usual capacity in a bid to curb the Covid-19 pandemic

As a result, matatu operators revealed that the ban due to the outbreak of coronavirus has cost more than 70 per cent of their revenue. 

About 18,000 matatus operate within Nairobi daily.

Mukabana noted that the 14-seater matatus to upcountry were losing Sh66 million a day, while 33-seaters lose Sh264 million per day. 

“Fifty-seaters to upcountry are set to lose Sh80 million while the 62-seaters will miss out on Sh115 million a day,” he said.

Matatu owners have been asking the government to provide fuel subsidies so that they can stop passing on the cost to commuters over coronavirus control measures. 

They decried  that with the coronavirus and orders from the government, the cost of doing business was high. 

“The mistake the government did was to fail to provide a remedy when they ordered we carry fewer passengers. At least they should come in and reduce or remove fuel taxes,” Kimutai said.

However, their plea was not acted upon.

Edited by Henry Makori