Finance Bill 2024: Motorists stage protest over vehicle circulation tax

Members of the Motorist Association of Kenya (MAK) have expressed concern about the proposed 2.5% Motor Vehicle Circulation Tax, saying it will have detrimental effects on the transport industry.

Several of the association's members on Friday convened at the Aga Khan walk in Nairobi’s Central Business District where they expressed their reservations about the proposed tax.

They argued that the tax would likely occasion compromised vehicle maintenance, heightened corruption, and increased road accident risks. 

The motorists hence urged the government to prioritize addressing inefficiencies within agencies and reducing road accidents before enforcing additional taxation measures.

They emphasized the imperative of fostering sustainable economic growth and ensuring road safety for all. 

“Leo tumekuja kujiunga na wenzetu wa association ya motorists kusema kwa pamoja kuwa hii tax tunaipinga kwa sababu serikali inachukua kutoka kwetu lakini haitupatii...hasaa watu wa taxi tunaumia sana,” said Ridehail Association Chairman Daniel Manga.

Organisation of Good Corporate Governance Chairperson Stephen Owoko added: “The motor vehicle tax is a tax that is misplaced; you don't tax an asset, you tax the profit, not taxing what somebody has earned.”