NAIROBI, Kenya, Nov 9 – A bill that seeks to exempt fuel from the annual adjustment and Value Added Tax (VAT) on petroleum products was Tuesday expected to be formally introduced in the National Assembly.The Petroleum Products’ (Taxes and Levies) (Amendment) Bill, which is sponsored by the House Committee on Finance and National Planning seeks to reduce the price of Diesel, Petrol and Kerosene following public outrage that prompted Parliament to start a review of the taxes on fuel.The Bill further proposes a reduction of the Petroleum Development Levy charged on super petrol and diesel from 5.40 Shillings to 2.90 Shillings and reduce VAT from eight per cent to four per cent.
The bill is set to be introduced for first reading and thereafter subjected to public participation before being brought back to the house for debate.The Committee which is chaired by Homa Bay Woman Representative Gladys Wanga says VAT accounts for 9.98 Shillings for every litre of Super Petrol and 8.56 Shillings per litre of Diesel, the second biggest tax item on fuel after excise duty and road maintenance.Fuel is one of the more than 31 products including beer, juice and bottled water that are subjected to inflation adjustment tax every year, a review that increases their prices.
