Kenyans will now pay heavily for fuel after the Kenya Revenue Authority announced new taxes on all petroleum products effective September 1 despite protests.
KRA Commissioner- General John Njiraini, in a statement on Saturday, informed Kenyans, oil marketers, resellers and retailers that Value Added Tax (VAT) will be charged on all petroleum products at a rate of 16 per cent on all transactions with effect from September 1.
This means that cost of transport, cost of living, goods and services will also be high, further hurting poor families. A litre of petrol will now cost Sh130 up from Sh112.
Mr Njiraini went on: “The changes are contained in the Finance Act 2013 which extended the exemption for three years. Further, the exemption was extended by two more years under the Finance Act 2016. Consequently, the VAT charge on petroleum products has now come into effect.”
He advised importers, depots, distributors and retailers, including pump stations, to charge, account and submit returns on the same to KRA by 20th of October.
“KRA has instituted measures to support oil industry players in complying with the law. We have also engaged the Energy Regulatory Commission in order to ensure coordinated action by relevant government agencies,” said Mr Njiraini.
HURT COMMON MAN
President Uhuru Kenyatta, who left the country on Saturday for China, was yet to sign Finance Bill 2018 which MPs passed on Thursday, postponing the increase to 2020.
MPs, business community and other leaders had asked the government to shelve the increase saying it will hurt the common man.