State's decade-long quest to impose 16pc VAT on petroleum products

The highest of these taxes on fuel is excise duty, which was traditionally regarded as 'sin tax' and charged on luxury or harmful goods, at Sh21.95 per litre.

"In our view, it is not an opportune time to increase VAT on fuel because the country is grappling with a lot of challenges, the cost of living is quite high, hovering at about nine per cent in the recent past," said Deloitte East Africa tax manager Fred Kimotho in a discussion yesterday on the Finance Bill 2023.