Browsing: Kenya VAT increase

• In Kenya, fuel is set to cost more once the taxman effects 16 percent VAT from the current 8 percent, which will make already high pump prices simply prohibitive. 
• Starting January 2024, Finance Bill also seeks to increase the advance tax payable on passenger and commercial trucks to $36.52 from $21.91 per year.
• The new tax will simply increase the cost of transportation in Kenya, piling pressure on consumers already overburdened by high food prices amid sluggish economy.

Kenya’s transportation sector is at risk as the government considers fresh fuel VAT increase, which threatens to cripple businesses. Through the Finance Bill, the government is also proposing to increase the advance tax payable on passenger and commercial trucks to $36.52 from $21.91 per year. As a result, investors in the industry might be forced to scale down their operations even as others heap the costs on consumers. 

The looming hit by …