List Of Taxes On Fuel In Kenya
In this article Keweb.co tries to answer the question by publishing the full list of Taxes On Fuel in Kenya
The taxman is collecting Sh62.89 on every litre of petrol, a 39 per cent jump in tax collections over the past two years that has made the Kenya Revenue Authority (KRA) a key beneficiary of the surge in pump prices.
The KRA collected Sh45.1 in taxes and levies in June 2020 from petrol, and Sh51.6 last year. The taxman is now collecting Sh62.89, underlining the impact of duties on driving petrol and diesel prices.
The surge in crude oil prices and the taxes have hit household budgets in an economic setting where the costs of basic items have surged, sending inflation to a 27-month high in May.
But it has enhanced the KRA collection, with taxes from fuel estimated at Sh22.9 billion in June or 15.7 per cent of average Kenya’s overall monthly duties of Sh145 billion.
This is more than three times the Sh7 billion monthly subsidy the State has offered to cushion consumers from the surge in the price of oil in international markets, with analysts putting pressure on the State to cut or freeze taxes in the quest for cheaper fuel.
Like other frontier economies, Kenya is reeling from a surge in crude oil prices since last year, which has forced it to start subsiding retail prices from April last year.
Below is the full List of the Taxes On Fuel In Kenya
Excise Duty
Road Maintenance Levy
Petroleum Development Levy
Petroleum Regulatory Levy
Railway Development Levy
Anti-Adulteration Levy
Merchant Shipping Levy
Import Declaration Fees
Value Added Tax (VAT)
How much is fuel taxed in Kenya?
They levy taxes of at least 60 per cent on petrol, more than other major developed economies such as the US, Canada, and Australia.
What is the VAT on fuel in Kenya?
The Treasury says levying a lower VAT of 8 per cent on goods such as fuel creates an undue advantage over other products that are taxed at 16 per cent.
When did fuel become vatable in Kenya?
Prior to proceeding on a month-long recess, the House had voted to defer the 16 per cent VAT on petroleum products by another two years since it was passed in 2013.