Kenya’s treasury to rise petrol VAT, taking Sh57 per litre

By professo

The Treasury in Kenya will implement a rise in value added tax (VAT) on petrol that will see it take Sh57.57 (US$0.57) for every litre.

The tax increase will be introduced to Nairobi on 1 September, and will increase the price of the fuel to Sh131.93 ($1.31) per litre.

Kenya’s Treasury has set a target of generating Sh70bn ($695.3mn) from the increase of petrol VAT.

The International Monetary Fund (IMF) proposed the rise in payment, which will increase the government’s share of the cost of a litre of petrol to 44%.

SEE ALSO:

Organisations such as the Kenya Private Sector Alliance (KEPSA), the Motorists Association of Kenya, and the Central Organisation of Trade Unions have warned of the rise in costs of the fuel following the implementation of the VAT price increase.

The institutions have expressed their concerns regarding the price rise and its effect on the nation’s economic growth, rather than generating the set Sh70bn.

Prior to the rise in VAT to be introduced at the end of this week, the country’s government already had several taxes regarding fuel, including a road maintenance levy, petroleum development levy, petroleum regulatory levy and railway development levy.

Share

Featured Articles

Abu Dhabi Airports prepares for Terminal A opening

A decade in the making, Abu Dhabi International Airport welcomes 6,000 volunteers to test operational readiness of stunning new Terminal A building

Business Chief expands portfolio with new look and coverage

Business Chief Middle East & Africa launches with fresh new look and extended coverage of the region, with exclusive executive interviews and insights

How Octopus Energy grew to become an industry giant

Octopus Energy continues to grow after a deal was agreed to acquire Shell Energy in the UK and Germany, taking its customer base to almost seven million

Perkbox CEO: How to support employees through tough times

Human Capital

How Middle East is embracing the future of digital finance

Corporate Finance

UAE Lulu Group shifts business for global growth and IPO

Corporate Finance