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Despite Tax Cut, Gas Prices Still Remain Unchanged

SK 2 years ago 1 min read

Despite the relief being slated to take effect on Friday, LPG dealers have not yet passed through to Kenyans the savings from halved VAT charges.

Citizen Digital conducted a spot check at significant LPG dealers, including Rubis, Shell, and Total, and found that the ticker prices for refills remained the same as on Thursday.

For instance, it still costs Ksh. 1,560 to refill a six kilogram gas cylinder at Shell.

At Rubis, a 13 kilogram LPG cylinder refill costs Ksh. 3,340, and at Total, it costs Ksh. 3,580.

Due to the 2022 Finance Act’s halving of the VAT assessed on its supply from 16% to 8%, LPG prices were widely anticipated to decline on Friday.

The VAT exemption for domestically produced passenger cars is one of the additional tax reforms set to go into effect this month.

In the meanwhile, after changes made through the Finance Act, the excise duty on fruit juices, cosmetics, beer, wines, and spirits, as well as cigars, is expected to increase.

Additionally, duty on imported SIM cards will be Ksh. 50 per SIM card, while duty on imported mobile phones will be Ksh. 10%.

In the meanwhile, loans provided by digital lenders will be subject to a 20% excise tax.

From the other side, less taxes will go into force on January 1st, 2023, with the capital gains tax (CGT) increasing from 5% to 15%.