Muturi urged to fast-track petroleum tax-cutting Bill

National Assembly Speaker Justin Muturi

National Assembly Speaker Justin Muturi.  FILE PHOTO | NMG

What you need to know:

  • Mr Muturi chairs the powerful House Business Committee (HBC) that sets the day-to-day agenda to be transacted by MPs.
  • The committee was last Thursday on the spotlight for delays in prioritising the report on the Petroleum Products’ (Taxes and Levies) (Amendment) Bill, 2021.
  • The Committee on Finance and National Planning approved the Bill and tabled the report in Parliament in November last year, setting the stage for its debate and approval.

National Assembly Speaker Justin Muturi has come under pressure to fast-track a Bill that seeks to lower taxes on petroleum products in a bid to save consumers from high pump prices.

Mr Muturi chairs the powerful House Business Committee (HBC) that sets the day-to-day agenda to be transacted by MPs.

A levy that motorists pay to support a fuel subsidy scheme will fall to Sh2.90 from Sh5.40 per litre, VAT on petroleum products will be slashed by half to four percent and fuel will be exempted from the annual inflation adjustment if the Bill sails through Parliament.

The committee was last Thursday on the spotlight for delays in prioritising the report on the Petroleum Products’ (Taxes and Levies) (Amendment) Bill, 2021.

The Committee on Finance and National Planning approved the Bill and tabled the report in Parliament in November last year, setting the stage for its debate and approval.

“I wrote to the Speaker asking that when we resume this year we give this Bill priority but until today I have no answer,” former Majority Leader and Garissa Township MP Aden Duale said.

“Kenyans are suffering and Mr Speaker you order from your substantive seat that this matter is prioritised and next week Tuesday or Wednesday you ask if the petroleum Amendment Bill can be brought to the House for the second reading.”

But Deputy Speaker Moses Cheboi declined to rule on the matter saying that it is a role of the House Business Committee.

Taxes have been blamed for the high pump prices prompting a petition that led to the tabling of the Bill in Parliament last year.

VAT accounts for Sh9.60 per litre of super, Sh8.19 per litre of diesel and Sh7.67 per litre of kerosene in the current monthly review lapsing midnight— making the tax the third biggest component in the three fuels.

The high prices have shone the spotlight on Kenya’s taxation regime on petroleum products, which is considered the highest in East Africa.

Fuel in Rwanda, Uganda and Tanzania is cheaper despite the countries relying on the Port of Mombasa to import the products.

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