Nairobi — A Bill to amend the Value Added Tax (VAT) Act has been formally introduced in the National Assembly, marking the initial step in a legislative process aimed at alleviating the tax burden on petroleum products. Majority Leader Kimani Ichungwah has proposed reducing the VAT on fuel from 16 percent to 8 percent for a three-month period. This Bill has been referred to the House Finance and Planning Committee, where it will undergo parliamentary scrutiny and public participation before it can be enacted into law.
The introduction of this Bill comes in response to widespread public outcry following the Energy and Petroleum Regulatory Authority (EPRA)’s announcement of a significant increase in fuel prices. Super petrol prices rose by Sh28.69 per litre, while diesel prices increased by Sh40.30 per litre. Consequently, a litre of super petrol now retails at Sh206.97, and diesel at Sh206.84.
In light of these developments, President William Ruto recently unveiled a package of interventions aimed at addressing fuel price pressures amid global market volatility. The proposed VAT reduction is viewed as a crucial measure to ease the cost of living for Kenyans, especially considering the rising energy costs that have affected transportation, goods, and services. Lawmakers and stakeholders will now engage in detailed debate and consultation on the Bill, with its passage anticipated to provide temporary relief to consumers if approved.
Comments are closed for this story.