Kenyans will have to dig much deeper into their almost empty pockets to be able to afford to purchase cooking gas after Kenya Revenue Authority (KRA) removed LPG gas from the list of zero-rated items.
The taxman said the 16 per cent Value Added Tax (VAT) will take effect on July 1, 2021, according to a report filed by Bloomberg Tax.
"We cannot, at the moment, provide a reliable estimate on the revenue expected to be raised from the imposition of VAT on LPG,” said the taxman, according to Bloomberg Tax.
The 16 per cent VAT was meant to take effect on LPG last year but the Kenya government delayed imposing it due to the tough financial situation of majority of Kenyans occasioned by the Covid-19 pandemic.
Kenyans should now expect an increment of about Sh300 on the normal price for a 13kg gas cylinder refill.