Kenya faces tough decision on fuel taxes, IMF loan rule

Move likely to affect disbursements to loan aimed at supporting post-Covid recovery.

In Summary

•Treasury has been under pressure from the IMF to double VAT on all petroleum products to cut budget deficit and tame growing public debt.

•MPs have however recommended slashing taxes in a move expected to bring down the cost of fuel.

Kenya must convince the IMF that slashing petroleum taxes will not affect its revenue basket for it to continue enjoying the Sh259.4 billion Covid-19 cushion loan.

According to tax experts, ...

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