Gas Prices Remain Unchanged Despite 50% Tax Cut

Dealers in LPG are yet to pass on the benefit of halved VAT taxes to Kenyans despite the relief being set to kick in on Friday.

A spot check at major LPG dealers by Citizen Digital including Rubis, Shell and Total established ticker prices on refills were unchanged from Thursday.

For instance, refilling a six kilogram cylinder of gas at Shell still attracts a cost of Ksh.1,560.

Refilling a 13 kilogram LPG cylinder at Rubis meanwhile costs Ksh.3,340 and Ksh.3,580 at Total.

LPG prices had been widely expected to fall on Friday with VAT levied on its supply being halved from 16 to 8 per cent through the 2022 Finance Act.

Other tax changes scheduled to take effect from this month include the exemption of locally manufactured passenger motor vehicles from VAT.

Excise duty on fruit juices, cosmetics, beer, wines & spirits and cigars is meanwhile set to rise after adjustments made through the Finance Act.

Further, imported SIM cards are set to attract duty at Ksh.50 per SIM card while imported mobile phones will attract duty at the rate of 10 per cent.

Loans disbursed by digital lenders will meanwhile attract excise duty at the rate of 20 per cent.

A smaller set of taxes will on the other hand take effect from January 1, 2023 including the raising of capital gains tax (CGT) from five to 15 per cent.