Treasury opposes halting of fuel tax

National Treasury CAS Nelson Gachuhie (L) make his presentation before the Senate Energy Committee members Ledama Ole Kina (C) and Johnes Mwaruma when they appeared before the committee on the 16 per cent VAT on petroleum products at Parliament. [Boniface Okendo/Standard]

The Treasury has defended the controversial 16 per cent VAT on fuel, saying suspending it for two years would cut funds for education, healthcare and other key capital projects.

Chief Administrative Secretary Nelson Gaichuhie and Energy Regulatory Commission Director-General Robert Oimeke yesterday told the Senate Energy Committee that they were not aware of any court order halting the implementation of the new tax.