Kenyans will now have to dig deeper as KRA implement the controversial 16 percent tax on all petroleum products effective from September 1st.
In a statement, the taxman explains that necessary measures have been put in place to ensure all industry players comply with the law.
Both the Energy Regulatory Commission and other government bodies have been called upon to see into effect the new regulations take effect.
KRA commissioner Mr. John Njiraini communicated to all Kenyans, oil markets, resellers and retailers the Value Added Tax will be added on all petroleum products.
The implementation of VAT had been postponed for three years dating back to 2013 and an additional two years from the Finance Act 2016. Debates have however been encountered in the last few weeks calling for another extension by two more years.
Central Organization of Trade Unions (COTU) through their secretary Francis Atwoli called on the President to assent the bill passed by the MP’s to stop the price increment.
Mr. Atwoli however blames Treasury CS Henry Rotich for effecting the price and threatens workers will stage demonstrations against his directive.
Speaking from Kajiado, Mr. Atwoli said the price change will increase the cost of living by about 20 percent. He further called the DPP to investigate Treasury CS for issuing such directives. Oil importers, depots and distributors have been called upon by KRA commissioner to charge their accounts and ensure they submit their returns come 20th of the following month.
A liter of petrol will now retail at Ksh 130 up from Ksh 112.
Transport is expected to increase together with the cost of production.
The extra cost incurred In production will be charged on the goods produced causing an increase in product prices.
Electricity which had already caused public outcry after price increase will also incur the additional cost in power production.