COTU files case seeking to stop fuel tax

Central Organization of Trade Union (Cotu) Secretary General Francis Atwoli speaks at Kabokiek village in Ainamoi Constituency. He said Cotu had moved to court to sue the Government over the 16 per cent fuel levy.

The Central Organization of Trade Unions (COTU) has moved to court on Tuesday seeking orders to suspend the 16 percent VAT on fuel imposed by the government.

The Secretary General Francis Atwoli through his lawyer Ekwe Ashiando said that they are seeking to reverse the directive as it will hurt Kenyans.

He argued that the punitive tax risk stunting the economic growth.

"Today, Cotu moved to court over the punitive increase of Value Added Tax on petroleum products. The high costs will cause many families to sleep hungry due to the rising cost of food.

"It will discourage people from travelling while the cost of medication and housing will be equally expensive. This is because everything that we do is dependent on the cost of fuel," Atwoli

The tax was first factored in the Finance Act 2013, its implementation was however suspended for three years until 2016, but was again put on hold for another two years, which elapsed on August 31.

Activists Okiya Omtatah and Wyclife Nyakina also filed an urgent case on Monday seeking the courts intervention to stop the increase in fuel prices.

“Increase in price of petroleum products is a definite threat to the socio-economic rights of Kenyans. It is also a threat to national security given that 60 per cent of Kenyans depend on petroleum products for industrial and domestic use and the increase in price affects the cost of everything,” said Mr Omtatah.