KRA announces 16pc petrol tax as COTU threatens strike

Motorists will now have to dig deeper into their pockets after the taxman announced 16 percent petrol tax on all products with effect from September 1.

According to the Kenya Revenue Authority (KRA), the changes are contained in the Finance Act 2013 which extended the exemption for three (3) years and later by two more years in the Finance Act 2016.

“KRA has instituted measures to support oil industry players in complying with the law. We have also engaged the Energy Regulatory Commission to ensure coordinated action by relevant Government agencies,” a statement released on Saturday said.

KRA has advised importers, depots, distributors and retailers, including pump stations, to charge, account and submit returns on the same by 20th of the succeeding month.

This comes even as the Central Organizations Trade Unions (COTU) urged the President to assent to the Bill that MPs passed to stop the increment.

COTU Secretary General Francis Atwoli faulted Treasury CS Henry Rotich for effecting the increase of fuel prices despite recommendations against the move.

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Speaking at his Ildamat home in Kajiado County on Saturday, Atwoli said increase of fuel prices is killing the country’s economy as it will increase cost of living by up to 20 percent.

He further warned that workers would stage protests across the country against the Rotich directive.

The COTU boss also urged Director of Public Prosecution Noordin Haji to investigate the CS claiming that he may have selfish interests driving his agenda on tax prices.

Additional reporting by Nancy Chepkoech

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