The Central Organization Trade Union (COTU) has threatened to call for a strike if the government goes on with it its plan to impose a 16 per cent Value Added Tax (VAT) on petroleum products.
Cotu Deputy Secretary-General Benson Okwaro says that the organization is consulting with other stakeholders on the planned VAT increase.
Speaking to journalists at the Cotu offices in Nairobi on Friday, Okwaro termed the planned VAT increase as punitive.
He accused the government of aiming to punish Kenyans noting that the cost of living will shoot up once the 16 VAT on petroleum products is imposed on September 1.
He said that prices of basic commodities that Kenyans consume are likely to increase, noting that petrol products are the engine of the economy.
“Cotu is consulting with other stakeholders with the aim compelling the government to suspend and stop the planned 16 per cent VAT increase on petroleum products,” he said.
The Cotu deputy Secretary general accused the national government of failing to consult stakeholders.
In June, National Treasury Cabinet Secretary Henry Rotich said that a 16 per cent VAT will be imposed on petroleum products starting September 1.
Already a section of stakeholders in the Public Service Vehicle industry have opposed the planned increase noting that it will lead to an increase in bus fares. #Hivisasaoriginal