Former Lagdera MP Farah Maalim has finally broken silence on the 8% Value Added Tax on fuel and petroleum products.
Maalim observes that the VAT is likely to push Kenyans to economic hardship in the coming days.
He says that while the government intends to get money and fund its projects, overtaxing taxpayers is not wise.
The former MP notes that there is no need for the government to force taxes on already poor Kenyans.
“Kenyans should brace themselves for tough times ahead if the 8% tax is imposed,” he told journalists at the Milimani Law Courts on Thursday.
Maalim asked the Jubilee government to reduce on external borrowing and utilise on the funds it collects as taxes for development.
He said that over-borrowing is now forcing the government to increase taxes.
The former MP further said that taxing petroleum products is like killing the economy.
He, however, called for a balance between taxes and the interests of Kenyans to guarantee a growing and stable economy.
On Thursday MPs voted in support of the proposed 8% VAT meaning that it will be equally imposed on petroleum products.
The MPs also approved the budgetary cuts as proposed by the National Treasury.
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