Tuesday, August 16, 2022

New tax to push fuel prices up again on October 1

The prices of fuel in Kenya are set to rise again on October 1 following the introduction of a new fuel tax. This comes even as fuel taxes continue to be attributed for the huge hike in prices.

From October 1, the Kenya Revenue Authority (KRA) will increase excise duty rates for fuel by 4.97 per cent. This will be effected in a bid to cover for the inflation witnessed in the Financial Year 2020/21, KRA stated in a public notice on August 10.

According to a report that appeared in the Daily Nation on Thursday, excise duty for regular petrol will rise from the current Sh. 21,522.68 to Sh. 22,592.36 per 1,000 litres. This will be equivalent to a litre of petrol rising by Sh. 1.069. AT the same time, the excise duty for premium petrol will rise by by 4.97 per cent to Sh. 23,044.09.. This will be equivalent to a rise of Sh. 1.091 per litre. A litre of kerosene will cost Sh. 0.565 more per litre, while a litre of diesel will cost Sh. 0.20 more per litre.

“Kenya Revenue Authority would therefore like to inform manufacturers and importers of excisable goods falling under the specific rate category and members of the public that the Commissioner General will adjust the rates of excise duty using the average inflation rate for the Financial Year 2020/2021 of 4.97 per cent, as determined by the Kenya National Bureau of Statistics,” KRA said.

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In some parts of Kenya in Northern region, consumers are buying a litre of petrol for as high as nearly Sh. 150. In Nairobi, the price of petrol will is selling at Sh. 134.2 per litre. A litre of diesel is selling at Sh. 115.60 while a litre of kerosene is now selling at Sh. 110.82 per litre.

“The prices are inclusive of the eight per cent value added tax (VAT) in line with the provisions of the Finance Act, 2018, the Tax Laws (Amendment) Act, 2020 and the revised rates for excise duty adjusted for inflation as per Legal Notice No. 194 of 2020,” said the Energy and Petroleum Regulatory Authority.

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