In Kenya, Members of Parliament (MPs) have approved a measure to double the value-added tax (VAT) on fuel from 8% to 16%. This decision is expected to contribute to the increasing cost of living in the country.
During the parliamentary session on Wednesday, MPs from the ruling party coalition voted in favor of the proposal, with 184 supporting the inclusion of the clause in the new finance bill. On the other hand, 88 lawmakers opposed the measure.
The government’s objective in implementing this tax hike is to generate approximately 50 billion Kenyan shillings ($356 million; £279 million) in additional revenue, citing the necessity to address the mounting national debt.
But the leader of the opposition MPs in parliament said it was punitive, terming the decision to push ahead with the fuel tax clause as “the saddest day in the history of this country”.
This week, Kenya’s parliament has been combing through clauses within the unpopular finance bill and considering and voting on amendments.
Besides the fuel tax, some of the controversial proposals include a housing fund levy to be paid by all salaried workers and an increase in taxes for social media influencers.