It is now official that Kenyans will have to dig deeper to cook starting July 1, 2021, as the government of Kenya moves to raise the price of refilling cooking gas by 350 shillings. “Cooking will no longer be zero-rated,” a clear message from KRA.
The government will be re-introducing a Value Added Tax of 16 percent on cooking gas in line with the Finance Act that the people Kenyans elected in Parliament passed. Finance Act that reinstated VAT on liquefied petroleum gas (LPG).
The Kenya Revenue Authority (KRA) said it would impose the 16 percent tax at the start of the new financial year in what is set to push it out of the reach of most households struggling with depressed incomes. This is set to hit hard on poor Kenyans.
Currently, the 13-kilogram cooking gas retails at 2,250, meaning that it would now increase to 2,610 shillings when the new tax measures come into force. The 6-kilogram one is likely to rise to 1,350 shillings when the taxes take effect.
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The imposing of 16 percent VAT on LPG is set to hit hard on millions of Kenyans whose income has greatly been affected by the Covid-19 pandemic. It will also force millions to look for an alternative way of cooking such as the use of firewood and charcoal.
The revelation to introduce a tax on LPG comes barely a month after it emerged that the International Monetary Fund (IMF) was piling pressure on the National Treasury to double VAT on all petroleum products in order to widen the tax net.
The Energy Petroleum and Regulatory Authority (EPRA) has been increasing the price of fuel with each passing month, forcing Kenyans to protest. For the first time, the price of fuel did not change for the month of April but still higher than other East African Countries.