Episode 69: Fuelling Our Nightmares
Beginning September 1st 2018, 16% VAT was applied on petroleum products, sparking nationwide uproar. This tax on petroleum products was first proposed by the VAT Act (2013) and scheduled to kick in in September 2016. However, in 2016, it was postponed by another 2 years. Before the price increase, petrol was KES 113.73, diesel was KES 102.74 and kerosene was KES 84.95 in Nairobi. After VAT was applied on September 1st, the price of petrol became KES 127.80, diesel KES 115.00 and kerosene KES 97.41.
Kenyans are now paying 44% in taxes per litre of fuel. We’re joined by Ramah Nyang, a journalist, to discuss this increase in tax and the effects it will have on Kenyans’ lives. Press play!
Resources
Fuel VAT to raise prices by up to Sh17 per litre
Treasury to take Sh57.57 for every litre of petrol sold
Kenyans big losers if fuel prices rise
Tough times ahead as prices of basic goods, services set to rise
Minority Whip Junet Mohamed seeks to delay tax plan on fuel
Uhuru cuts fuel VAT to 8%, State hospitality expenditure
Kenya National Bureau of Statistics: Economic Survey 2018
Kenya National Bureau of Statistics: INFLATION TRENDS 1961-PRESENT
Kenya National Bureau of Statistics: Integrated Household Budget Survey
Kenya National Bureau of Statistics: Consumer Price Indices and Inflation Rates for August 2018
Kenya National Bureau of Statistics: Quarterly Gross Domestic Product Report First Quarter, 2018
4 thoughts on “Episode 69: Fuelling Our Nightmares”
Ranma Nyang hits it out of the park once more, His grasp of everything Finance and Kenyanese is absolutely spot on. Great Listen!
Thank you Patrick, glad you enjoyed it! 🙂
There was something that Ramah Nyang forgot about the tax reforms in 2012/2013. In the Value Added Tax Act, 2013, one of the most-abused powers of the Cabinet Secretary was taken away: the power to grant exemptions. Everything was pushed to the Schedules, which require an Act of parliament to amend. The same is true of the Excise Duty Act, 2015. The last bastions of exemptions are Income Tax Act and Stamp Duty Act.
Thank you for your comment, and for adding that important information! 🙂 Stay tuned!