Kenya: Price of Cooking Gas to Reduce As MPs Okay Proposal to Slash Vat

Nairobi — Members of Parliament have endorsed a proposal to amend the proposed amendment to Finance Bill 2022 to slash the Value Added Tax on LPG gas from 16 percent to 8 percent, a relief for many homes who rely on domestic cooking gas.

The National Treasury had in 2016 scrapped VAT on LPG in a bid to boost the adoption of clean cooking gas but later in July 2021, they reinstated it to a 16 percent standard tax rate.

The slashing of the VAT on cooking gas is contained in the Petroleum Products (Taxes and Levies) Amendment Bill, 2021 passed by the National Assembly Committee on Finance and National Planning.

The Kenya Revenue of Authority had initially petitioned to maintain the 16pc VAT arguing that it would lose out on revenue amounting


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