The National Treasury has rejected calls to revise fuel taxes saying the move would distort the country’s budgetary allocation to various state departments.
Principal Secretary Julius Muia told MPs on Wednesday that “any alteration or elimination of a rate of tax must take into account its knock-on effect on the national budget.”
He said any amendments to the tax laws would lead to drawing a supplementary budget to adjust the revenues that the taxman stands to lose in the changes.
The PS said the reduced taxes would further impact the government expenditure, including flagship projects in the infrastructure and in the long run affects the implementation of Big Four agenda.
The PS appeared before the Finance Committee of the National Assembly chaired by Homa Bay Woman Representative Gladys Wanga following a petition by Matungulu MP Stephen Mule and two other members of the public.