Matatu Fare Hike Ahead: Finance Bill 2023 Sparks July Increase
Matatu operators announced a fare increase in July, following the implementation of the Finance Bill 2023, on Wednesday, June 28.
Albert Karakacha, chairman of the Matatu Owners Association. Stated at a meeting in Nakuru that the move was made to ensure that their businesses earned a profit commensurate with the high cost of living.
In addition, Karakacha urged Kenyans to have patience with drivers and conductors across the nation, stating that the situation was out of their hands.
“If you go to the supermarket after product prices have increased in the country, you will find that the prices of the products have also increased.
“There is no way we can continue to operate our business in the same manner, yet the tax increase will also increase fuel prices across the nation,” he stated.
However, Karakacha cautioned matatu operators across the nation against taking advantage of Kenyans by setting exorbitant fare prices to cushion their customers who are also experiencing other life pressures.
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“We are asking our members to be cautious when increasing prices so as not to harm our customers,” he added.
Raila Odinga, the leader of Azimio, had urged the operators to oppose the increased levy by doubling their carrying capacity while on the road rather than increasing their rates.
In response, the operators stated that the opposition leader could only assist Kenyans by advocating for lower insurance premiums and taxes on vehicle spare parts.
By signing the Finance Bill 2023 on Monday, June 26, President William Ruto authorized the implementation of the increase in the value-added tax (VAT) on fuel from 8% to 16%.
The additional 8%, or Ksh14,592, will be added to the current price of gasoline in price ratio settings, assuming that other factors of supply and demand remain constant.
The additional 8% VAT on petroleum products will have a significant impact, particularly on the price per liter of fuel, national revenue, and the price of essential household goods.
Matatu Fare Hike Ahead: Finance Bill 2023 Sparks July Increase
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