- Uhuru's proposal to slash the tax to eight percent was adopted after MPs failed to marshal the two-thirds majority required to overturn a presidential memorandum.
- Tellingly, a the opposition to the President's push was being championed by Ruto's close allies at the time when he served as Deputy president.
President William Ruto's proposal to reinstate the 16 per cent value-added tax on petroleum products has exposed his double speak amid a looming storm.
The National Treasury has proposed that from July 1, the VAT pricing on petroleum products will go up from the current 8 per cent enacted during the tenure of retired President Uhuru Kenyatta.
However, during President Ruto's campaigns, he promised to address the high cost of living by fixing heavy taxation on Kenyans whom he said were being overtaxed.
The fresh tax bid is expected to trigger a massive political storm when the Finance Bill, 2023 will be up for approval by parliament with Raila Odinga's led opposition promising fireworks.
The move by Ruto's Kenya Kwanza administration could evoke memories of a parliamentary battle in 2018 and 2021 when Uhuru vetoed MPs'push to defer 16 per cent VAT tax for two years.
Uhuru had gone ahead to slash the tax to eight per cent and returned that to Parliament with a memorandum, arguing that the government was in dire need of more resources.
At the time a transitional clause, which VAT-exempted petroleum products for two years, had expired and MPs needed to either defer or allow it to come into effect.
Uhuru's proposal to slash the tax to eight per cent was adopted after MPs failed to marshal the two-thirds majority required to overturn a presidential memorandum.
There were only 215 MPs in the chaotic session that was marred with shouting and periodic suspensions after lawmakers opposed to Uhuru's push caused drama.
Tellingly, the opposition to the President's push was being championed by Ruto's close allies at the time when he served as Deputy President.
They included Kikuyu MP Kimani Ichung'wah (current majority leader) and Kiharu MP Ndindi Nyoro(current chairperson of the budget committee).
"Mine would be to ask the National Treasury to reconsider that provision or defer its implementation to allow....commercial production of oil. When the prices come down, we can charge VAT on petroleum fuel," Ichung'wah said then.
Arguing that the 16 per cent VAT was envisaged upon the country embarking on commercial oil production, Nyoro said then: "We cannot afford to burden the people by imposing VAT on oil products."
The two will be tasked by Ruto to champion for the Finance Bill, 2023, which they vehemently opposed in 2021.
In 2021, they vehemently opposed the tax after the matter resurfaced in the House during deliberations on the finance law to address increases in the prices of petroleum products.
"We must begin by asking ourselves as a House whether it is not time to amend the constitution that gives the President the powers to legislate through the backdoor..so that on matters that touch on the people that we represent, the president cannot impose his will," Ichung'wah said then.
Then Majority leader Aden Duale argued that the house had rejected a bid to raise VAT on petroleum products, "but the president used his powers to under Article 115."
"This house must rise to the occasion. We must bring a Bill. The President cannot use Article 115 to harass Kenyans. The whole thing is about IMF who said we must charge VAT. We must reduce the sh78 taxation on a litre of petrol and other levies," he said then.
President Ruto could be walking the same dreaded path as he seeks to raise taxes on petroleum products with the opposition expected to resist the move.
Raila has been accusing Ruto of heavily taxing Kenyans who are already reeling in the high cost of living.