Kenyans rejoice over access to cheaper cooking gas after removing an 8 per cent Value Added Tax (VAT) on cooking gas.
Recent pricing rates have been released with a 13-kilogram Liquefied Petroleum Gas retailing between Ksh 2800 to Ksh 3,200 depending on the location and the product brand.
In addition to that, a 6-kilogram cooking gas is going for Ksh 890 to Ksh 1,060. It also depends on the location of the purchase and the product brand being purchased.
After removing subsidies on all products, 13-kilogram cooking gas retailed at Ksh 3,300 while a 3-kilogram LPG was sold for Ksh 1,350 as the cheapest price in the market.
Energy Petroleum Regulatory Authority (EPRA)Director, General Daniel Kiptoo spoke on the matter earlier. He directed that the prices are bound to go even lower as they plan to re-stock and increase the number of products available.
“The cost of refining gas cylinders has gone down mainly due to the removal of taxes,” EPRA Director General Daniel Kiptoo said.
Within the new Finance Act 2023, cooking gas was exempted from the 8 per cent VAT and other levies that made it more expensive to purchase previously.
Finance Act 2023
The new gas prices started their effect this week after the court lifted the suspension of the Finance Act 2023. Okiya Omtatah had filed a petition against the Finance Act 2023 due to its ‘exaggerated’ taxation on the common ‘mwananchi’. Though the court initially suspended the act’s enactment, the three-judge bench delegated to its decision, decided to lift the suspension and allow its enactment.
In addition to the exemption from the 8 per cent VAT, the Finance Act removed the 3.5 per cent Import Declaration Fees and the 2 per cent Railway Development Levy on cooking gas.
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President William Ruto initially made a promise to reduce the cost of cooking gas. He however retracted his statement and said that he promised to lower the cost of the gas cylinder and not the gas itself. Most Kenyans were quick to disapprove of his promises after he retracted his statement.
“Currently the cooking gas retails at Ksh 2,800 and with the subsidy, the price will fall to about Ksh 500 in the next financial year beginning July this year,” he said during the launch of the Women Fund in KICC.
He has however proved them wrong by fulfilling his promise to his citizens and allowing access to cheaper cooking gas to all households.
“The rate of tax shall be in the case of a zero-rated supply, in the case of the supply of liquefied petroleum gas including propane,” Finance Act 2023 read.
Read Also: Court lifts suspension on controversial finance act 2023
