NAIROBI– Kenyan President Uhuru Kenyatta has proposed a reduction of the controversial 16per cent VAT on petroleum products to 8 per cent.
In his address to the nation that came hours after his rejection of the amended finance bill 2018 Thursday evening, President Kenyatta said he has taken the steps following a huge public outcry.
If the proposal sails through, petrol will reduce from the current 127 to 118 shillings per liter while Diesel drops from 115 to 107 shillings per liter.
President Uhuru Kenyatta has yielded to public pressure to intervene on the controversial 16 per cent VAT that took effect on 1st of this month with consequences of high fuel prices.
In his address to the nation Friday, the President urged traders to take the cue and likewise lower their prices accordingly.
He said his decision to send back the finance Bill 2018 to parliament was based on the fact that the Bill did not put into consideration the changing economic challenges facing the country.
National Assembly Speaker Justin Muturi has in the meanwhile recalled MPs who are currently on a long recess for three special sittings on Tuesday and Thursday next week to consider the President’s reservations.
President Kenyatta also proposed budget cuts across all arms of government and more resources for the Judiciary, the Ethics and Anti-Corruption Commission and the office of the Director of Public Prosecution for the fight against graft.
Source: NAM NEWS NETWORK