If you don't want to pay motor vehicle circulation tax, don't use your car - MP Kuria Kimani
![If you don't want to pay motor vehicle circulation tax, don't use your car - MP Kuria Kimani If you don't want to pay motor vehicle circulation tax, don't use your car - MP Kuria Kimani](https://citizentv.obs.af-south-1.myhuaweicloud.com/97938/conversions/Fxg3b_IXwAIpTRG-og_image.webp)
Molo MP Kuria Kimani. | FILE/@KuriaKimaniMP/Twitter
Kuria
Kimani, the MP for Molo Constituency and chair of the National Assembly Finance Committee has
defended the government’s proposal to levy car owners through a motor
vehicle circulation tax.
The tax put forward in the new Finance Bill 2024 seeks to introduce an annual tax that will be paid during motor vehicle insurance cover acquisition. Set at a minimum of Ksh.5,000, the levy will be 2.5 per cent of the vehicle’s value.
Kimani, who
described the levy as “a hybrid of income and wealth tax” on Tuesday said the
move is meant to encourage investment in what he described as an elaborate local public transport system.
“If you go
to economies ahead of us, there are elaborate and very efficient public
transport systems,” the MP told NTV in an interview.
“Every time
investors want to invest in our public transport system through public-private
partnerships, the feasibility studies show that we like to drive our cars so
much that we are not able to attract foreign investment.”
He argued
that Kenyans like using cars because the public transport system is not “elaborate”
and if Kenyans were to be presented with a better alternative, they would avoid
using cars.
And while
the motor vehicle circulation tax will be tied to the annual renewal of
insurance policies, Kimani claims Kenyans have an option of not paying it – by not
using their cars altogether.
“If you don’t
want to pay the motor vehicle circulation tax, then don’t use the car, like how
you don’t use the expressway if you don’t want to pay for it,” he said.
Per the bill,
ambulances, and government-owned vehicles are exempt from the motor vehicle
circulation tax as stipulated in the Privileges and Immunities Act.
Failure to collect and remit motor vehicle tax within five working days after issuing of motor vehicle insurance cover, an underwriter shall be liable to a penalty of fifty per cent of the uncollected tax and the actual amount of the uncollected tax.
Want to send us a story? SMS to 25170 or WhatsApp 0743570000 or Submit on Citizen Digital or email wananchi@royalmedia.co.ke
Comments
No comments yet.
Leave a Comment