Cooking gas prices will fall by at least Sh400 for a 13-kilogramme cylinder and Sh200 for a 6kg cylinder if Parliament adopts a government proposal to scrap three taxes on the commodity.
A cabinet brief released last evening said that the executive is set to ask parliament to exempt Liquid Petroleum Gas (LPG) from June. Among the levies William Ruto administration want to be removed is the eight percent Value Added Tax (VAT), the 3.5 percent Import Declaration Fees and the Railway Development Levy of two percent.
President Ruto has outlined an ambitious plan to remove taxes on cooking gas tax-free in a bid to make it more affordable especially amongst low-income homes as part of transitioning to clean cooking by 2030.
“We will allocate money that will enable us to reduce cooking gas prices, we will do away with taxes and enable our women to cook without thinking about their health,” said the President in February.
During the launch of Tiafa Gas in Dogo Kundu, Ruto pledged to remove the tax on cooking gas with an aim to eliminate the use of wood fuel.
He directed Energy CS Davis Chirchir to start working to ensure that the plan is actualised.
“Bei ya gas itapungua kwa sababu tutaondoa ile kodi yote imewekwa kwa mambo ya gas (The cost of gas will decrease because we will do away with the tax levied on the same),” he said.
The President said the deduction on the cost of gas will result in health safety for Kenyans and restoration of the environment by reducing the number of trees fallen for firewood and charcoal.
“So Waziri you have the marching orders and you know what you must do so that in three years every household in Kenya has a subsidised cooking gas,” he said.
Cooking gas prices are currently at record highs with the 13-kilogramme going for an average of Sh3,300, mainly attributed to the VAT and global high prices of crude.
The Finance Bill 2023 will be tabled in Parliament before June.