As the 16% VAT is implemented tomorrow, EPRA will release new fuel pricing.
On Friday, June 30, the Energy and Petroleum Regulatory Authority (EPRA) will reveal new pump prices.
Every month on the 14th, EPRA announces modifications to fuel prices.
Industry insiders believe that this will cause the price of diesel and super petrol to climb by more than Ksh12.
In support of the National Treasury’s request to raise taxes, the Committee on Finance and Planning of the National Assembly claimed that it had considered the economic benefits and drawbacks of doubling the VAT and determined that the benefits outweigh the drawbacks.
The committee recognized that the current VAT rates were not uniform and decided to harmonize them to 16%, which would apply to petroleum products as well. It was also acknowledged that the differential VAT on fuel had the effect of keeping petroleum wholesalers in a constant position of credit, which resulted in significant expenses for the government. In its report on the Finance Bill, the Committee noted that the provision was among the least popular in the Bill and was thus rejected. The proposal was against the implementation of a 16% VAT on petrol.
