Consumers may be headed for tougher times in the coming weeks as the Kenya Revenue Authority (KRA) lines up a tax raise on petrol as part of an annual adjustment on inflation.
This comes as the government plans to end fuel subsidy that has prevented prices from rising, a move that promises steep increases in the cost of the product that directly affects the cost of business and living.
KRA has proposed to raise excise taxes on regular and premium fuel, kerosene and industrial diesel, which firms rely on for the manufacturing of commodities. These fuel categories are expected to impact all sectors of the economy.
“In exercise of the powers conferred by Section 10 of the Excise Duty Act, 2015, the Commissioner-General adjusts for inflation the specific rates of duty set out in the Schedule hereto in accordance with the formula specified in Part 1 of the First Schedule to the Act with effect from the October 1, 2022 and takes into account the average inflation rate for the 2021/2022 financial year of 6.3 percent,” KRA Commissioner-General Githii Mburu stated in the public notice.
Read also; KRA Surpasses Targets to Hit KSh2 Trillion Collection Mark.
