Stop Using Your Car if you Don't Want to Pay Motor Vehicle Circulation Tax - MP Kuria Kimani Tells Kenyans

Ezra Manyibe | 1 week ago
File image of Molo MP Kuria Kimani. |Photo| Courtesy|

National Assembly Finance Committee Chairperson and Molo Member of Parliament Kuria Kimani has defended the Finance Bill 2024 proposal to tax motor vehicle owners in the country.

The Bill stipulates that Kenyans will be required to pay 2.5 per cent of the total vehicle worth as tax during insurance cover acquisition. The amount is set at a minimum of Ksh5,000 and a maximum of Ksh100,000.

Speaking during an interview with NTV on Tuesday, May 14, 2024, Kimani argued that the tax would spur private and public investment in a more elaborate local transport system.

“If you go to economies ahead of us, there are elaborate and very efficient public transport systems,” Kimani said.

“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.”

The Molo legislator argued that if the country invests in a more elaborate transport system, more people would be encouraged to use public means instead of personal cars.

Kimani noted that Kenyans are at liberty to pay or not pay the tax, so long as they don't use their vehicles if they don't pay.

“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.

The Finance Bill 2024 under the Privileges and Immunities Act only exempts ambulances, and national and county government vehicles from paying the tax.

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