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Okiya Omtatah files case challenging new fuel tax

Activist Okiya Omtatah has filed a case challenging the new tax imposed on petroleum products.

In the petition, Mr Omtatah says the 16 per cent Value Added Tax, which came into effect on September 1, is irregular and unlawful.

He says this is because the tax was imposed in defiance of an express decision by Parliament to suspend its implementation.

Mr Omtatah said the implementation is contrary to Article 47 of the constitution and has impacted negatively on costs of essential goods and commodities.

In Nairobi, a litre of petrol is retailing at Sh127.8 while that of diesel is at Sh115. The price adjustments were effected by the Energy Regulatory Commission last weekend after a new Value Added Tax on petroleum products kicked on September 1.