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September 26, 2018

KRA maintains 16% VAT on fuel in effect, asks dealers to file returns

"KRA informed the general public, oil marketers, resellers, and retailers that the VAT will be charged."
"KRA informed the general public, oil marketers, resellers, and retailers that the VAT will be charged."

The Kenya Revenue Authority has maintained that the 16 per cent VAT on fuel will be implemented as planned for September 1.

In a statement, the taxman said the price changes are contained in the Finance Act, 2013; which extended the exemption for three years.

The exemption was extended by two more years under the Finance Act, 2016, consequently putting the timings at this month.

In the face of confusion over the changes, KRA informed the general public, oil marketers, resellers, and retailers that the VAT will be charged.

The tax agency also advised importers, depots, distributors, and retailers to charge, account, and submit returns on the same to the authority.

"KRA has instituted measures to support oil industry players in complying with the law," the statement reads in part.

"We have also engaged the Energy Regulatory Commission in order to ensure coordinated action by relevant government agencies."

Parliament had on Wednesday voted to postpone the implementation of the VAT until 2020, citing the already high cost of living.

However, the tax measure was contained in the Finance Act, 2018.

The amendments by Parliament halting the changes is yet to be approved by the President.

Read: Short-lived relief as CS effects 16% VAT on fuel

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