Individuals at KRA to file returns. [Photo/capitalfm.co.ke]Treasury’s decision to increase the fuel levy by Sh3 and the anticipated introduction of toll roads could generate a collective moan among motorists who may view it as double taxation.Although toll roads will largely be run by private entities, motorists, especially public service vehicles, may protest the move by passing the charge over to commuters to cushion themselves against losses.Consultancy firm PricewaterhouseCoopers (PwC) has weighed in on the concerns, saying while the government means well, the increase is likely to future make commuters more financially vulnerable to matatu operators.PwC partner Rajesh Shah said the highly unregulated matatu industry will not have the discipline to trade fairly with commuters and may use the new levy as an excuse to increase fares.“Matatus are normally quick to increases fares the moment the fuel price goes up. We are likely to see them reacting to this levy by hiking fares.Nonetheless, Shah argues that while Kenyans may feel the pinch now, in the long run, they will reap the benefit that these taxes bring. He said a well-oiled transport sector as a result of good infrastructure will reduce the cost of living.The government is subjecting road users to double taxation.“
If the fuel levy were ring-fenced, then it would be the justest and efficient ‘user pay’ mechanism at our disposal. Road tolls, also known as turnpikes, will, however, be restricted to several highways as motorists will be charged for the voluntary action of driving on a specific road.