Doubling VAT on fuel will hurt profit margins, transporters say

Matatu operators at Kisumu bus stage wait for customers after the end of the year celebrations. [Michael Mute, Standard]

Transporters have expressed concern over the doubled value-added tax (VAT) on petroleum, noting it will have a huge impact on their cash flow.

Kenya Transporters Association (KTA) National Chairman Newton Wang'oo said yesterday the increase of VAT on petroleum from eight to 16 percent will eat into their profit margins and also impact consumers.