The Central Organisation of Trade Unions Kenya (COTU) has criticised plans by the Government to introduce tax on petroleum products.
The tax is set to begin in September.
But Cotu Secretary General Francis Atwoli said that the 16 per cent Value Added Tax (VAT) on petroleum products would bring down the economy and lead to job losses.
“This is a plan to bring down our economy and persecute poor Kenyans since they will be forced to pay more for transport, food, housing and dig deeper in their pockets to pay extremely high prices for goods and services,” said Mr Atwoli.
Parliament passed the tax in 2013.
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Its implementation was, however, given a three-year grace period to September 2016.
The government further extended the period by two years, bringing it to September this year.
Atwoli wants it scrapped altogether.
“The Energy Regulation Commission should stop lying to Kenyans, for the last seven months the price of petrol has been skyrocketing under its watch," said Atwoli.
"How can a commission lower petrol price by Sh0.46 in one day and later work with the treasury to add VAT tax of up to Sh17? This unacceptable. The Commission should know that Kenyans are not fools,” he added.
Atwoli said the Government should come up with another way of raising revenue other than introducing new taxes especially on petroleum products which he said are already overtaxed.
“The tax will chase away investors and lead to loss of new employment opportunities. It will push the cost of doing business higher and force employers to sack workers,” he said.
