Equity Bank Chief Executive Officer (CEO) James Mwangi has urged Kenyans to stop complaining about increased taxes.
Reacting to the 16 percent Value Added Tax (VAT) imposed on fuel products by the government in order to close revenue deficit, Mwangi said Kenyan must embrace taxation if they aspire to be a globally competitive nation in the near future.
The hiked fuel prices sparked outrage from Kenyans and leaders who continue to pile pressure on President Kenyatta to assent to the Bill pushing the implementation of the 16 percent VAT on fuel to 2020 citing the already high cost of living.
However, Mwangi argues that postponing the move will not be a solution, adding that Kenyans must pay taxes if they are to continue enjoying services such as a ride on standard gauge railway.
“Essentially what we are seeing is the cost of transformation. We can’t wish and enjoy a ride on the standard gauge railway line but we are not willing to tighten our belts,” Mwangi said on Monday.
He called on Kenyans to put emotions aside and look at the long-term benefits of the tax as postponing won’t solve the economic challenges facing the country.
“As a generation, we may need to pay a bigger price for our children. We can’t keep on postponing. Two years is just like a flick of time, it will be here with us [and] we will still push it like we pushed it two years ago,” Mwangi said.
You need to give Kenyans…
You need to give Kenyans assurances that the taxes collected will not be stolen. That is the bigger fear Kenyans have.
Very curious: What has…
Very curious: What has Equity Bank to do with the Fuel price Fiasco? Or is it the AUDACITY of Bank CEO defending his Mega customers (at the Expense of Poor Kenyans)?
VAT is an indiscriminate…
VAT is an indiscriminate form of taxation whose effect is so far reaching that the already heavily taxed Kenyan consumer does not need if we have to have a vibrant consumer based economy.
Mwangi yamaza kabisa. How…
Mwangi yamaza kabisa. How much corruption money pass through your bank Equity. Money laundering. If you close all the loopholes Kenya will be in a better position. 16% VAT will slow the economy. Which school taught you this Mr Mwangi because it is not correct “Mwangi said Kenyan must embrace taxation if they aspire to be a globally competitive nation in the near future”. that is not in any economics text book
and he forgot to mention all…
and he forgot to mention all of it will go to these goons we call leaders, instead the government should recover all the stolen money from these mega-scandals and cut taxes on the already heavily taxed kenyans. It is always the poor who have to make big sacrifices after the corrupt few drain the coffers. they steal and steal and then the poor have to be taxed and taxed. I predict civil upheaval in the near future, i hate conflict but sometimes that is what it takes.. all this taking these thieves to court and not a single conviction, the cat cooking guy was convicted within a day