Petrol to hit Sh125 per litre if Treasury pushes through VAT on fuel products
1 weeks ago, 17:01
The members of the Senate's Energy Committee have questioned the move saying it will dampen economic growth, as higher fuel costs eat into production costs. "
Consumers in far-flung towns will pay even higher prices arising from added costs like transport, the sum of which forms the principal amount on which VAT is levied.
It will be a double tragedy for motorists because global oil prices are on the rise, increasing cost for net importers such as Kenya," Narok Senator Ledama ole Kina, a member of the committee, said.
The IMF has in the past said Kenya needs to do away with the tax exemption on fuel as part of a wider plan to increase revenues, reduce the budget deficit and ultimately slow down the debt pile up.
Gaichuhie refuted the claims that IMF is behind the push saying Treasury was trying to increase its revenue collection to offer Kenyans better services. "
The increase in VAT was first introduced in 2013 but was deferred in 2016 when the government handed a two -year relief in