Parliament Committee Forced to Consider Removal of Motor Vehicle Tax

Monday, June 17, 2024 –Budget Committee in Parliament is now mulling over removal of certain questionable taxes following public uproar.

Reports reaching Kenyawide.com news desk have indicated that the Parliamentary Budget Committee led by Molo MP Kuria Kimani has had a rethought and now wants the Motor Vehicle Tax removed.

The committee is considering throwing away the tax alongside Eco levy, excise duty on bread and vegetable oil, and money transfer and internet tax.

In a news report by Citizen Tv on Monday June 17, the committee had felt the weight of the people who called them out over the punitive Bill.

During the last Public Participation period, members of the public completely rejected the Bill saying it is meant to harm their pockets, further.

The MPs, who are currently in Naivasha for a retreat, noted that they will include the amendments in their report set to be presented before the Parliament tomorrow, Tuesday, June 18.

What, therefore, this means is that Kenyans would be reprieved from being forced to part with the taxes on motor vehicle and bread.

And if the Eco levy is thrown away, the prices of certain commodities such as smartphones, loudspeakers, microphones, earphones, monitors, projectors, ATMs, calculating machines and cash registers will remain as it is now.

The motor vehicle tax was expected to target every Kenyan who owns a car. The bill had proposed a fee equivalent to 2.5 per cent of the car’s value if the tax was introduced.

On the other hand, Eco levy was going to affect manufacturers and importers in the country where the price would have been increased for the consumers. Other items targeted by the levy were batteries, plastic packing bags, and rubber tyres for vehicles, motorbikes and bicycles.