Fuel Tax: Motorists in Kenya can now heave a sigh of relief. This is after the High Court in Bungoma on Thursday temporarily suspended the implementation of the new 16 per cent VAT on fuel.
According to the Daily Nation, a group of youth in Bungoma sued the National Treasury Cabinet Secretary Henry Rotich for effecting the new fuel levy.
The order suspending the levy was issued by Justice Stephen Riech. The case will continue on September 12.
The new fuel tax has caused a boycott by some oil marketers resulting in fuel shortage across the country. The price of petrol is currently selling at about Sh. 128 per litre.
To go round the tax, Kenyans living along the borders have been buying fuel at neighbouring countries where the commodity is much cheaper.
Currently, Kenya has the highest fuel prices in East Africa. This is despite the fact that her neighboring countries which are landlocked ferey their fuel through Kenya.
Following the fuel levy, other commodities have been on the rise. Yesterday, maize millers announced that they will be increasing the price of wheat and maize flour due to high production prices that the levy has instigated.