Anthony Mwangi and Noel Wandera

Patients in need of medical oxygen will have to pay more after Parliament slapped Value Added Tax (VAT) on it.

Treasury had wanted medical oxygen be included under exempt supplies as this would contribute to Covid-19 mitigation measures by making treatment of the disease more affordable.

But the National Assembly Finance Committee turned down the request, saying by exempting oxygen from taxable items will increase tax expenditure and the government’s aim to substantially reduce the same.

And yesterday, MPs supported the measures taken to review VAT on vital items especially fuel which they said had been overtaxed.

They said by introducing VAT to essential commodities such as bread and fuel would overburden the common man who is already overtaxed.

Acute shortage

Many health facilities have been lacking medical oxygen which is vital in treatment of Covid  patients, this has been attributed to high cost prompting the Treasury to seek for it to be exempted from VAT.

The committee has also retained syringes in the VAT regime, saying they will be vital in supporting treatment of Covid.

“The health of citizens and resumption of normalcy is key to the growth of the economy and revenue generation.

It is, therefore, paramount to support Covid mitigation measure that would fast-track restoration of normalcy,” said the committee, chaired by Homa Bay Woman Representative Gladys Wanga.

The committee said exempting syringes will make them affordable especially during the Covid crisis.

With many Covid patients facing oxygen needs, hospitals are facing an acute shortage of the life-saving commodity, putting the lives of many patients at risk.

Tax amendment

Kimilili MP Didmus Barasa supported the review of VAT on fuel, saying the current prices were unbearable. 

“Fuel in neighbouring Uganda is cheaper than in Kenya yet Uganda gets their fuel through the Port of Mombasa.

The Treasury should bring on board necessary taxation amendments so that we can talk about what is possible for this country to transform.”

Funyula MP Oundo Mudenyo said Treasury should explain why fuel is cheaper in Uganda than in Busia.

Kinango MP Benjamin Tayari claimed every time the Energy, Petroleum and Regulatory Authority are looking at ways of making money, the easiest target has been fuel prices. 

“It’s high time the Treasury came up with better ways of looking for money to finance the budget. We need to think outside the box.”

Dawood Abdul Rahim (Imenti North) said for the State to assist its people, it must reduce taxes.

Mwatate’s Andrew Mwadime said removing the tax was welcome as it will help create jobs, especially to the youth.

“Fuel is a very important commodity in the country. It has a chain reaction. Even Mama Mboga out there are suffering.”