Motor Vehicle Circulation Tax introduced at the point of acquiring for insurance cover will milk many car owners dry
This is a move to increase tax bucket to finance Kenya Kwanza Administration’s projects
However, majority of Kenyans have opposed the move leading them is the operation linda jamii initiative
Those who own cars in Kenya are about to start selling them off at a throw away price or may start crying in their private rooms as the government proposes to tax them for driving while others are not
According to the proposal provided by the National Treasury targeting to introduce Motor Vehicle Circulation Tax is what will make many forget about whether they owned a vehicle
The new tax is in addition to a wave of taxes and levies imposed by the government to contribute to the full cup of own source revenue target
A document from the treasury awaiting approval recommends of a minimum tax amount payable by all motor vehicle owners in addition to a graduated amount based on the engine capacity of the vehicle.
This will catch Kenyans buying cars ar the point of registering for an insurance cover. They will start paying it once the buyer gains full ownership of the car by purchasing insurance
The motor vehicle circulation tax will be levied concurrently with the carbon tax which will be introduced to discourage the use of fossil fuels to combat adverse effects of climate emissions
The carbon tax is the push of President William Ruto’s fight to a greener environment and need of breathing fresh air from contaminated carbon dioxide
Government sees the tax as a solution that will address the twin challenges of addressing revenue challenges and stopping air pollution Government will explore the possibility of introducing a carbon tax based on the carbon content of fossil fuels,” He said
Additionally, plans are advanced stage for government to introduce an excise tax on forklifts, excavators, tractors, and earth movers but also introducing incentives that promote the use of green energy