Hard Times ahead for Kenyans as KRA Announces 16 Percent Tax on Fuel

The Kenya Revenue Authority (KRA) has announced 16 percent tax on all petroleum products effective September 1st.

This means motorists will now have to dig deeper into their pockets for fuel and other products whose prices will be affected by the increased taxes. Already Matatu operators have announced fare prices will increase beginning this month as a result of the hiked fuel prices. 

In a statement on Saturday, the taxman said the changes are found in the Finance Act 2013 which extended the exemption for three years and later by two years in the Finance Act 2016.

“KRA has instituted measures to support oil industry players in complying with the law. We have also engaged the Energy Regulatory Commission to ensure coordinated action by relevant Government agencies,” KRA Commissioner- General John Njiraini said in a statement on Saturday.

Consequently, KRA has urged importers, depots, distributors and retailers to charge, account and submit tax returns on the same by 20th next month.

On Thursday, Members of Parliament passed Finance Bill 2018 pushing the proposed increase of tax on petroleum products to 2020 but President Uhuru Kenyatta, who jetted out of the to China on Friday evening, is yet to sign it.