Suspend 16% value-added tax on cooking gas, says petitioner

The Milimani law court has received a case filed to have the 16 percent value-added tax (VAT) imposed on cooking gas suspended.

According to the petitioner, a Nairobi resident, members of the public were not engaged before the passing of the Finance Bill  2021 as is mandatory in the constitution.

Dindi Oscar Okumu points out that the imposed tax will lead to the reversal of gains made regarding environmental conservation and will violate the citizens’’ right to life, food, and dignity amidst the covid-19 pandemic.

“By failing to engage the public before passing the Bill, the National Assembly did not understand and did not take into account the enormous economic and environmental challenges the said legislation posed,” he said in court documents.

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President Uhuru Kenyatta, last week, signed the bill into law effecting taxes including 16 percent value-added tax to the supply of LPG gas and greater excise duty for telephone and data services which will result in higher airtime and internet costs.

The bill also increased fuel prices and revised tax rates on gaming and money transfer to 7.5 percent and 12 percent, respectively.

Kenyans will not have it easy in the coming months especially after recent data shows that the cost of living in the country is at its highest in 15 months with inflation now standing at 6.32 percent.

According to data from the Kenya National Bureau of Statistics (KNBS), the current rate of inflation is the highest since the 7.17 percent registered in February 2020.

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This was largely attributed to a rise in food and fuel costs, which consequently affected the energy and transport sectors.

Foodstuffs that Kenyans depend on including Sukumawiki, spinach, beef, and cooking oil saw an increase in price counterweighing a cool-down in other commodities such as onions, tomatoes, and potatoes.