Home Politics Why Raila Fuel Tax Boycott Spells Doom For Economy

Why Raila Fuel Tax Boycott Spells Doom For Economy

Azimio La Umoja leader Raila Odinga has now asked Kenyans to evade taxes to express their frustration at the recently-passed Finance Law.

In his spirited address at the Kamukunji Grounds in Nairobi county, Raila Odinga asked Kenyans to; carpool, ditch personal cars, or walk to work.

He additionally pleaded with matatu operators not to raise bus fares, but instead offered them a chance to break the law by overloading to meet their running costs.

These measures, according to Raila Odinga, would deny the government fuel tax which has since been doubled from 8% to 16%.

If Raila Odinga’s previous calls are anything to go by, President William Ruto is set to have it rough in funding the Kenya Kwanza Plan.

The tax boycotta may have several effects on Kenya’s economy.

A significant reduction in fuel consumption due to a boycott can lead to a decline in tax revenues, forcing governments to cut spending in other areas or find alternative sources of income.

The economic consequences can be particularly severe if the boycott persists for an extended period or gains widespread participation.

A fuel tax boycott can also have implications for businesses operating in industries reliant on fuel consumption, such as transportation and logistics.

Higher fuel costs resulting from taxes can increase operational expenses for these businesses, potentially leading to reduced profitability or closures.

The success or failure of a fuel tax boycott often depends on how President William Ruto’s government responds to the protest.

Raila Odinga, has asked the government to repeal the Law or he will mobilize Kenyans against it.

The Finance Bill according to the President, was necessary to make Kenya self-reliant in funding its programmes, budgets and obligations.

Ruto said the opposition was insisting on Kenya being debt-laden yet she can support her own budget.

However, if the civil disobedience catches on, the government may be forced to go back to the drawing board.

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