Expedite Petroleum product and taxes Bill, Duale tells Parliament

Garissa Township MP Aden Duale has called on Parliament to expedite the Petroleum Products and Taxes Bill 2021, aimed at reducing value-added tax on petroleum products, to ease the cost of living.

He said bills that concern the common citizen, should be prioritised over those regarding the political class.

“It is unfortunate that Majority and Minority leaders are calling the house in recess on matters that only help the political class. We have been called three times to deal with the Political Parties’ Amendment Bill 2021 to help political parties form coalitions,” Duale said.

“It very unfortunate that the bill sponsored by the Finance committee led by Gladys Wanga is not being prioritised.”

Duale said he will write to the Speaker of the national assembly on Monday to recall the house for a special sitting to pass the Bill and have the President sign it soon.

He said this will help Kenyans get cheap fuel.

The MP spoke in Garissa town on Saturday when he attended the graduation of Madarasa Al Naajat (Maahad) Islamic Centre, alongside Islamic scholars and community leaders.

The Bill is aimed at reviewing taxes and levies on petroleum to make the products cheaper.

While global prices have been on the rise in recent months, bringing the price of fuel down will require a reduction of taxes and levies applicable to petroleum products.

The Bill also proposes to restructure the Petroleum Development Fund to specify under what circumstances the fund can be used by establishing the Petroleum Development Fund Advisory Board.

The finance committee proposed a reduction in the levy, which is charged at Sh5.4 on petrol and Sh2.9 for diesel, after revoking the Petroleum Development Levy Order, 2020, and amending the Petroleum Development Fund Act, 1991.

Lawmakers also proposed that VAT be cut from eight to four per cent.

VAT on fuel was introduced by the VAT Act of 2013, but its adoption was deferred by three years until 2016.

Another two-year extension was given through the 2016 Finance Act.

The 2018 Finance Act pegged VAT on fuel at 8 per cent.

MPs also propose slashing the VAT rate on liquefied petroleum gas or cooking gas from the current 16 per cent to eight per cent.

Edited by Kiilu Damaris