Omtata, COTU move to court to challenge fuel levy

By Noah Kipkemboi

Activist Okiyah Omtatah and Central Organisation of Trade Union moved to court Monday to challenge the 16% tax on petroleum products even as the bodaboda Safety Association of Kenya directed its members to adjust the cost of their services.

The aftermath of the implementation of the 16% value added tax on petroleum products has been a total displeasure with the treasury.

With political figures urging President Uhuru Kenyatta to intervene and stop the punitive levy, the Central Organization of Trade Union, COTU went to court to stop the levy, with Secretary General Francis Atwoli saying that the move is not good for individual Kenyans and the economy in general.

Also taking the legal route was activist Okiya Omtatah, who sued the state and sought to suspend the tax saying that “it has an effect of limiting rights to property and advancement of socio-economic rights.”…

The Bodaboda Safety Association of Kenya on the other hand has stated categorically that the new levy on fuel is not making life any easier for its members, further giving a directive that:

-The fares in all cities (Nairobi, Mombasa, Kisumu and nakuru) will not be less than Ksh.100

-Any ride outside the above cities CBD will be sh.200 and above

-The fares in other towns CBD eg (Busia, Nyeri, Naivasha, Bungoma etc) will be Kh.50 and above

-The fare from towns CBD to environs will be sh.100 and above

The tax on petroleum products was factored in the Finance Act, 2013, before the same was stayed for another 3 years and later in 2016 for another 2 years which elapsed last month.

 

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