Saboti MP Caleb Amisi has promised to join hands with other legislators to come up with a legislation that will reduce taxations that have pushed up the cost of fuel and affected the price of other basic commodities.
Mr. Amisi said there is a need to review the legislation that increased Value Added Tax (VAT) on fuel to eight per cent as well as introduction of the Petroleum Development Levy last year which increased fuel prices by a further Sh5.
“The hiking of the prices was done when parliament is on recess but I can assure Kenyans that we will review it once we resume our sittings,” he spoke while condoling with the family of Orie Rigor
The legislator said the country needs a review of its tax regimes to correspond with the output of individuals or institutions to ensure those who earn less pay less value added taxes unlike the current case.
“The value added tax burden should be carried by highly profitable corporations. We can’t just overtax Kenyans in a bid to generate more income for the government yet this is a burden on them,” said Mr. Amisi who donated Sh 120, 000 to the family.
The Energy and Petroleum Regulatory Authority reviewed the pierces with a litre of Super Petrol, Diesel, and Kerosene now retailing at Sh134.72, Sh115.60, and Sh110.82 per litre respectively in Nairobi.
The authority said that prices are inclusive of the 8 per cent Value Added Tax (VAT) in line with the provisions of the Finance Act 2018, the Tax Laws (Amendment) Act 2020, and the revised rates for excise duty adjusted for inflation as per Legal Notice No. 194 of 2020.
Petroleum prices are subject to excise duty, road maintenance levy, petroleum development levy, railway development levy, petroleum regulatory levy, anti-adulteration levy, merchant shipping levy, import declaration fee and VAT.
The VAT on petroleum products was introduced in the Value Added Tax Bill enacted in 2013 but was not implemented until 2018 when an initial three-year extension period and a further two-year extension lapsed.