Exciting news for all cooking gas users in Kenya! The government is proposing to scrap three taxes on cooking gas, which will result in a reduction of around Sh430 for the 13-kilogramme cylinder.
This move will be presented to MPs through the Finance Bill 2023, with the aim of making cooking gas more affordable, especially for low-income households.
The taxes to be removed include the eight percent Value Added Tax (VAT), the 3.5 percent Import Declaration Fees, and the Railway Development Levy of two percent.
By eliminating these taxes, the government hopes to reduce the use of biomass fuel, save forests, and help transition to clean cooking by 2030.
Currently, the prices of cooking gas are sky-high, with the 13-kilogramme cylinder going for an average of Sh3,300 due to the VAT and global high prices of crude. However, if the proposal is adopted, it will knock off Sh256 in VAT, Sh112 in IDF, and Sh64 for RDL for the 13-kilogramme based on the current prices.
This means that more Kenyan homes will be able to afford cooking gas, which is the second most popular fuel after firewood, with 24 percent of households using it.
The President, William Ruto, has an ambitious plan to remove all taxes on cooking gas to make it more affordable for everyone.
The Finance Bill 2023 will be tabled in Parliament before June, and we hope that it will be passed to benefit all Kenyans. So, let’s keep our fingers crossed and hope for the best!