Kenyans will have to dig deeper into their pockets starting July 1, 2021, when 16 percent Value Added Tax (VAT) on cooking gas is effected.
The Finance Act 2020 reintroduced VAT on liquefied petroleum gas but delayed the levy for one year because of the high cost of living.
The Treasury pleaded with members of the Finance Committee, who were opposed to the gas levy to support it on condition that the implementation be delayed by a year.
The MPs had warned the new charges would push more households to use pollutant fuel such as kerosene and charcoal for cooking.
The MPs also cited COVID-19 adverse effects as justification for the implementation delay.
Beginning July 1, Kenyans will pay at least Ksh.350 more for cooking gas.
Currently, a 13-kilogram cooking gas is retailing at an average of Ksh.2,250, meaning it would shoot to about Ksh.2,600 when the levy comes into force.
The rising cost of cooking gas will add to the perennial fuel price hikes that triggered public anger forcing the Energy and Petroleum Regulatory Authority (EPRA) mid this months, to keep pump prices unchanged.
In 2016 the National Treasury scrapped VAT on cooking gas allowing Kenyans to enjoy low prices.
The move was to cut costs and increase uptake among low-class households who largely rely on kerosene and charcoal for cooking.
