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Matatu owners want government to reconsider introduction of Motor Vehicle Tax

The Matatu Owners Association (MOA) is urging the government to rescind the proposed motor vehicle annual tax as contained in the draft Finance Bill, 2024.

MOA Chairman Albert Karakacha termed the tax, to be capped at a minimum of 5,000 and a maximum of 100,000 shillings, as a death knell to the country’s budding automotive industry.

The association has vowed to oppose the Finance Bill 2024, as it will affect their businesses.

“We still pay other taxes from fuel levy to insurance. We are telling the government that 2.5 per cent (Motor Vehicle tax) as an association we can’t support because the same vehicles are the ones carrying the hustlers,” said Karakacha.

He urged the government to exclude the tax on the Bill. “We have a listening President. We believe it will be put away.”

The MOA Chairman was speaking in Mombasa during a Road Safety Clinic organised in partnership with GB Auto.

Karakacha said they have been conducting countrywide road safety clinics that have significantly reduced road carnage.

“We want to make sure we change the image of the transport industry,” stated Karakacha, adding, that the road accidents witnessed in the country were caused by the heavy rains that affected visibility on the roads.

Karakacha lauded GB Auto for supporting the matatu industry through the introduction of a high-quality vehicle dubbed King Long Van.

GB Auto handed over a van assembled in the country valued at 3 million shillings to Sabaki SACCO on a one-month pilot.

Buyers will enjoy a free service of up to 1000 kilometres and a warrant of three years.

“We are relatively new in the market but with the best products, therefore we want the SACCO to have the opportunity to enjoy our service,” said GB Auto Mombasa Branch Manager Edwin Okombo.

By Mourice Seretta

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