Avoid dou­ble tax­a­tion, just raise fuel prices

The Star (Kenya) - - Voices -

Kenyans are among the most heav­ily taxed peo­ple in the world but now face dou­ble tax­a­tion. On top of be­ing taxed in the price of fuel and VAT, they will now be charged road tolls as the gov­ern­ment col­lects only Sh50 bil­lion from the Fuel Levy against the re­quired Sh150 bil­lion, a mas­sive short­fall.

In an at­tempt to close that great gap the gov­ern­ment is set­ting up toll sta­tions on the Thika Su­per­high­way, the South­ern By­pass and other roads, among them the Mom­basaNairobi high­way and the Nairobi-NaivashaNakuru Mau Sum­mit high­way, in five years.

The pur­pose of the Fuel Levy is to pay for the cost of road build­ing and main­te­nance.

If the gov­ern­ment wants to raise some money the bet­ter thing to do, in­stead of dou­ble tax­a­tion, is to just in­crease the Fuel Levy and charge more for petrol.

The toll sta­tions are likely to ben­e­fit only the well off and be­come an im­po­si­tion on ev­ery­one else — the vast ma­jor­ity — be­gin­ning in an elec­tion year.

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