NAIROBI– Kenya’s National Treasury is staring at a huge financing gap after Parliament deferred the implementation of the Value Added Tax (VAT) on petrol and diesel.
Parliament on Wednesday also shot down a proposal to introduced charges on bank transactions exceeding 500,000 shillings (about 500 US dollars). The Treasury was planning to implement the 16 per cent VAT on fuel from the Saturday this week.
The National Treasury will now be forced to go back to the drawing board to strategize on new revenue streams after Parliament thwarted its plan to charge VAT. Treasury was targeting to collect close to 100 billion shillings in revenue from fuel in a bid to tame borrowing and close the 550 billion shillings budget gap.
Source: NAM NEWS NETWORK