Kilifi North MP Owen Baya, has vowed to defy his party leader Raila Odinga's directive on the 16 per cent fuel VAT.
Several ODM MPs and party leaders converged in Lavington for the party's Parliamentary Group (PG) meeting on Tuesday, on whether or not to support President Uhuru Kenyatta's memorandum on the controversial Finance Bill which proposed a 16% VAT on fuel products.
Kenyatta declined to approve the Bill, saying the VAT should be slashed by 50% to 8%, something that a section of ODM MPs dismissed saying Uhuru ought to have withdrawn the entire VAT since the taxpayer is overburdened with taxes due to the high cost of living.
Owen Baya was among leaders who attended the meeting that was chaired by Odinga.
Kenyatta's Jubilee Party Parliamentary Group also continued at State House over the same issue.
After the meeting, ODM leaders led by chairman John Mbadi and National Assembly Minority Whip Junet Mohamed addressed the press, saying ODM and entire NASA coalition (ODM, ANC, Ford Kenya and WDM-K) had resolved to back Uhuru's 8% proposal.
Parliament is expected to debate the Bill on Thursday, September 20, before being forwarded to Kenyatta by Speaker Justin Muturi.
However, Baya later on dismissed the statement by ODM, saying: "Kenyans have whipped MPs towards zero VAT on fuel and we will not listen to any other whips. No whip is bigger than Kenyans."
Baya said the VAT had caused his constituency to lose a big investment and will not be party to it.
"I am deeply rooted to my No Vote on 8% VAT and other taxes including the confectionary and housing tax. Today my constituency has lost a big investment because of the VAT for fuel and confectionary sugar tax. These taxes are bad for the country. I will vote no!" said Baya on Wednesday.
The move leaves Odinga in dilemma after a section of Gusii and Ukambani MPs also opposed the VAT.
Meanwhile, Ford Kenya party leader Bungoma Senator Moses Wetangula distanced NASA from the VAT after ODM's statement, saying:
"There has been no agreed coalition position on the VAT saga. Our opposition to imposition of a further tax load remains intact. The ODM leader's statement is personal and does not in anyway represent NASA. NASA MPs are advised to play their opposition role."
Mombasa Governor Ali Hassan Joho and ANC party leader Musalia Mudavadi are also opposed to the VAT.
Joho indicated that Kenyans are being subjected to suffering since the VAT will have a net effect of increasing the cost of goods on virtually every item for every Kenyan. (Read more about Joho's statement here)
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