Cooking Gas Prices Set to Rise

Starting from July 1, cooking gas prices are set to rise. Kenyan households will now have to pay at least Ksh.360 more for the 13kg cooking gas that currently costs Ksh.2250.

Kenya Revenue Authority (KRA) will start imposing the 16% at the start of the new financial year.

The Petroleum Institute of East Africa (PIEA) had previously petitioned for the Parliament to postpone the re-introduction of the 16 percent tax from July 1, in a bid to cut reliance on dirty fuels like charcoal and illuminating kerosene and encourage the use of LPG, but MPs rejected the push.

Members of Parliament cited the reason for rejecting the move to push LPG into the zero-rated category as being one that would cost the government input tax claims from industry players and that it would eventually dent the Treasury’s expected taxes.

“The Committee observed that the removal of VAT on LPG will lead to a significant reduction of revenue, hence distorting the fiscal framework for the 2021/22 financial year,” said the finance committee,” committee said.

The committee added that this is because the zero-rating LPG will attract “ input tax refund which will consequently contribute to tax expenditure.”