Motorists will have to dig deeper into their pockets as petroleum products will start attracting the 16% value added tax (VAT) as from September following pressure from the International Monetary Fund (IMF).
The treasury principal secretary confirmed that the prices of petrol will rise as from September 1 to fulfill a promise that Kenya made to the IMF in 2016. Petrol will retail at Ksh130 per litre after the new rates are effected.
Dr Thugge said the grace period has expired meaning they will no longer postpone the implementation of the VAT Act 2013
Diesel and Kerosene will also be affected going up by Ksh16 and Ksh13 respectively.
Diesel will retail at Ksh119.77 while Kerosene will go for Ksh99.44.
The International monetary fund has been pressuring Kenya to remove tax exemptions in order to reduce the deficits in the budget and increase revenue.
The VAT act of 2013 on petroleum products was set to commence in 2016 after the act provided a three year grace period which was further deferred by two years.
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