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Case filed in bid to overturn VAT on cooking gas

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A private citizen has filed a case in court challenging implementation of the 16 per cent VAT on cooking gas.

Under a certificate of urgency on Monday, Oscar Okumu argues that the 16 per cent Value Added Tax imposed on Liquified Petroleum Gas is likely to create a ripple effect as it will not only increase the prices of commodities but also strain the environment which Kenyans and other stakeholders are continuously trying to conserve.

“Among the reasons for zero rating LPG, was to move Kenyan households towards clean energy and reduce pressure on tree cover from firewood and charcoal consumption,” he said.

Okumu said the imposition of 16 per cent VAT will reverse the gains made in terms of environmental conservation.

On June 23 the National Assembly passed the Finance Bill .

The Finance Act 2020 was assented to by the President on June 30.

The effect of the new developments according to Okumu subjects LPG to a tax rate of 16 per cent.

Okumu said the Energy and Petroleum Regulatory authority is set to review tariffs and charges for LPG to include the 16 percent.

It is his arguement that the National Assembly did not engage members of the public for a constructive public participation as is required in law.



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