Households will from July 1 pay at least Sh350 more for cooking gas following the introduction of the 16 percent value-added tax on the co...
Households will from July 1 pay at least Sh350 more for cooking gas following the introduction of the 16 percent value-added tax on the commodity, adding to the pain of costly energy like fuel and electricity.
This is in line with the Finance Act that reinstated value-added tax (VAT) on liquefied petroleum gas (LPG) but delayed the levy for one year to July due to concerns about the cost of living.
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.
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| Cooking gas prices to rise Sh350 on new tax |
"The effective date of the amendment is 1st July 2021. This means that the supply of liquefied petroleum gas will be subject to VAT at a standard rate of 16 percent from 1st July 2021,” the KRA saidAlso, read on;
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13-kilogram cooking gas retails at Sh2,250, meaning that it would now increase to Sh2,610 when the new tax measures come into force.
Item Gas Refill Only Price (Kshs) Cylinder & Gas Price (Kshs)
6KG GAS 1050 4,050
13KG GAS 2,250 6,950
22.5KG GAS 3,900 11,200
50KG GAS 8,650 19,850
Source: Total Energies
The price of LPG has increased effective today 1st July 2021 due to the introduction of 16% VAT.6kg has increased by 168 and 13KG by 350
According to Martin Chomba, the chair of Petroleum Outlets Association of Kenya said that LPG sellers would immediately start pushing the extra cost to consumers in order for them to comply with the new tax regulation. “We must remit a 16 percent VAT for every cylinder sold or refilled. It is natural that we will pass the added cost to consumers,” he said.
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