Costs for the 13 kilogramme will drop by about Sh430 if Parliament adopts a government proposal to scrap three taxes on cooking gas.
The William Ruto administration will ask MPs to amend the Finance Bill 2023 to remove cooking gas from the 8 percent VAT, the 3.5 percent Import Declaration Fees, and the 2 percent Railway Development Levy, according to a State House brief released on Thursday.
As part of the 2030 transition to clean cooking, President Ruto has outlined an ambitious proposal to eliminate taxes on cooking gas in order to make it more affordable, particularly for low-income households.
“To reduce the cost of liquefied petroleum gas (LPG) and make it affordable, reduce the use of biomass fuel and destroy our forests, the Bill proposes to exempt LPG from VAT,” reads the State House brief.
Given the VAT and the high price of oil on the international market, cooking gas is currently more expensive than ever, with a 13-kilogramme selling for an average of Sh3,300.
In Kenya, 24 percent of homes utilize cooking gas, making it the second most popular fuel after firewood, according to official statistics.
Cylinders of cooking gas are subject to an 8% VAT on the Cost, Insurance, and Freight per container, with IDF and RDL at 3.5 percent and 2 percent, respectively. If authorized, the Sh0.40 per kilogram Petroleum Development Levy will continue to be the only tax on cooking gas.
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