Expect to pay more at the pump any moment from now after Kenya Revenue Authority (KRA) announced that the 16 per cent VAT on petroleum products is effective today.
There was confusion as to whether the government would start charging the levy despite Parliament postponing it for two years.
National Treasury on Friday dismissed the suspension as null and void.
“The changes are contained in the Finance Act 2013 which extended the exemption for three years. Further, the exemption was extended by two more years under the Finance Act 2016. Consequently, the VAT charge on petroleum products has now come into effect,” KRA said in a statement.
Motorist will now pay about Sh18 more for a litre of petrol at Sh131.93. Some towns will pay as high as Sh140.
A spot-check across many petrol station has however shown they are yet to effect the record hike.
They say they are yet to receive communication from Energy Regulatory Commission who as at yesterday were yet to receive a directive from The Treasury.
“KRA has advised importers, depots, distributors and retailers, including pump stations, to charge, account and submit returns on the same to KRA by 20th of the succeeding month,” added the KRA statement.
They added that they have engaged the Energy Regulatory Commission in order to ensure coordinated action by relevant Government agencies.