Petrol, Kerosene Prices To Go Up
Poor households using kerosene for cooking and lighting and motorists are among the big losers in the Sh2.26 trillion budget presented to Parliament Wednesday by National Treasury CS Henry Rotich.
The proposed budget, which seeks to promote growth of industry, is 22.82 per cent larger than the Sh1.84 trillion budget for the year ending this month.
The proposed taxation measures are expected to help the Kenya Revenue Authority collect Sh1.38 trillion in 2016-17, a 16.10 per cent increase over this year’s projection of Sh1.18 trillion.
Rotich proposed reintroducing the excise duty on kerosene, which was scrapped in 2011, at a rate of Sh7,205 for every 1,000 litres, meaning Sh7.21 additional levy per litre. Kerosene users can blame unscrupulous traders who have been using the commodity to adulterate diesel.
“This has denied the oil marketers business in the neighbouring countries, in addition to giving them a bad reputation,” Rotich said in his speech. “In addition, adulteration negatively impacts car engines and increases their maintenance costs.”
The government is, however, seeking to encourage low-income families to switch to cleaner cooking gas. Duty on gas stoves and electric cookers has been slashed to 10 per cent from 25 per cent.