The Raila Odinga-led Orange Democratic Movement (ODM) has disagreed with President Uhuru Kenyatta over the introduction of value-added tax (VAT) on petroleum products.
Uhuru on Friday proposed a fuel tax of 8 per cent as a means of getting funds to finance various government projects and services to citizens.
A VAT of 16 per cent is currently being levied on all petroleum products, causing sharp rise in the prices of basic commodities.
The MPs, through Finance Bill 2018, voted to postpone the VAT on fuel for two years but the President rejected it and returned it to the National Assembly recommending the tax be pegged at 8 per cent.
But ODM has disapproved the move and vowed to shoot down the Bill once it is tabled in Parliament next week.
Party chairman John Mbadi said VAT on petroleum products was ill-advised and warned that it would be disastrous to the economy.
"This is not about numbers. It will still have a ripple effect on fares. We can see that fares have already gone up by 50 or 100 per cent in some of our towns despite the increase of the levy to 16 per cent. This doesn’t make economic sense. By putting the VAT at eight per cent, the president means that he wants it charged," Mbadi said.
The legislator, who is also the National Assembly Minority Leader, spoke on Friday at the sidelines of meeting between MPs and Editors Guild in Mombasa.
Mbadi further asked lawmakers allied to Uhuru-led Jubilee Party to 'side with Kenyans' and stick to their earlier proposal which recommended a zero per cent VAT.
"We are not accepting any more taxation on fuel," said the Suba North MP.