Court Stops KRA From Hiking Fuel Taxes On October 1

The High Court has temporarily stopped the Kenya Revenue Authority (KRA) from increasing fuel taxes on October 1, a move that would have seen the prices of most consumer goods hiked.

In a ruling, Justice James Makau said that there will be a danger to Kenyans in the further increase of fuel prices.

“I find the application meets the threshold for interim orders. The petitioners have established they have a prima facie case with a likelihood of success,” he said, following a case filed by youth from Korogocho under the banner name UFANISI Centre.

KRA commissioner-general Githii Mburu had announced an increase in rates on excise duty in line with the average inflation rate for the 2020-21 financial year of 4.97 percent.

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The rate as determined by Kenya National Bureau of Statistics would have been effective from October 1, subject to approval by the Treasury CS Ukur Yatani.

“Kenya Revenue Authority would therefore like to inform manufacturers and importers of excisable goods falling under the specific rate category and members of the public that the Commissioner General will adjust the rates of excise duty using the average inflation rate for the Financial Year 2020/2021 of 4.97 per cent, as determined by the Kenya National Bureau of Statistics,” KRA said mid this month.

If implemented, a litre of petrol will cost Ksh1.069 while a litre of kerosene will cost Ksh0.565 more per litre. A litre of diesel will cost Ksh0.20 more.

Read: Irony of Duale, Speaker Muturi’ Anger on Hiked Fuel Prices After Forcing MPs to Adopt 8 Percent VAT in 2018

On Tuesday, September 14, the government removed fuel subsidies that saw pump prices hit a historic high.

The subsidies amounted to Ksh7.10 on a litre of petrol, Ksh9.90 on diesel and Ksh11.36 on kerosene.

As a result, a litre of super petrol, diesel and kerosene is now retailing at Ksh134.72, Ksh115.60 and Ksh110.82 respectively in Nairobi.

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