MPs mull dropping VAT on fuel
MPs are set to consider a proposal to vacate Value Added Tax (VAT) on petroleum products from next week as Kenyans keep mounting pressure for an intervention to check runaway fuel costs that have pushed up the cost of living.
The National Assembly Finance and National Planning Committee is expected to organise a public participation of the petition to drop the taxes on Tuesday next week.
In the latest review, fuel prices went up sharply after the Treasury dropped Kes7.10 subsidies on super petrol, Kes9.89 on diesel, and Kes11.36 on Kerosene sending the commodities to historic highs.
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A litre of super petrol is currently retailing at Kes134.72, diesel (Kes115.60) while Kerosene, which is used by millions of poor households is costing Kes110.82 per litre in Nairobi.
Subsequently, the Committee will consider or drop the proposal on VAT by making recommendations to the House.
The decision by the Committee chaired by Homa Bay MP Gladys Wanga will inform if Kenyans get instant relief on the current high fuel costs or not.
Curiously, the same committee dropped a similar proposal during the consideration of the 2021 Finance Bill earlier this year.
