Petrol, kerosene prices to go up, cooking gas down _ the star, kenya

Poor households using kerosene for cooking and lighting and motorists are among the big losers in the Sh2.26 trillion budget presented to Parliament Wednesday by National Treasury CS Henry Rotich.

The proposed budget, which seeks to promote growth of industry, is 22.82 per cent larger than the Sh1.84 trillion budget for the year ending this month.

The proposed taxation measures are expected to help the Kenya Revenue Authority collect Sh1.38 trillion in 2016-17, a 16.10 per cent increase over this year’s projection of Sh1.18 trillion.

Rotich proposed reintroducing the excise duty on kerosene, which was scrapped in 2011, at a rate of Sh7,205 for every 1,000 litres, meaning Sh7.21 additional levy per litre. All 4 gas giants names Kerosene users can blame unscrupulous traders who have been using the commodity to adulterate diesel.

“This has denied the oil marketers business in the neighbouring countries, in addition to giving them a bad reputation,” Rotich said in his speech. E electricity bill payment “In addition, adulteration negatively impacts car engines and increases their maintenance costs.”

The government is, however, seeking to encourage low-income families to switch to cleaner cooking gas. Static electricity examples Duty on gas stoves and electric cookers has been slashed to 10 per cent from 25 per cent.

“This will give Kenyans access to clean, safe and efficient household energy, protect forest cover and reduce premature deaths,” Rotich said.

The CS also accepted a proposal by the Kenya Roads Authority to increase the road maintenance levy to Sh18 from Sh12 per litre of diesel and petrol to cater for increased need to maintain the expanding road network.

Other fuel consumers are, however, set for some relief after Rotich extended the introduction of the 16 per cent VAT on petroleum products by one year from the initial target of September 2016, based on a three-year transition period.

To bridge the gaping housing supply gap of more than 150,000 units in urban areas, the CS proposed cutting corporate tax for developers building at least 1,000 affordable houses a year to 20 per cent from 30 per cent.

Rotich said he will be gazetting rules to implement the simplified 10 per cent tax on gross rental income for landlords earning less than Sh10 million. Electricity physics ppt The regulations empower the Commissioner of Income Tax to appoint withholding tax agents to collect taxes on a minimum of Sh12,000 monthly income.

Raw materials to make animal feed have also been exempted from the 16 per cent VAT, providing relief to livestock farmers after exemption of the levy on final products failed to result in lower prices.

“In order to make animal feed affordable to farmers and attract more manufacturers to invest in the sector, I propose to exempt raw materials used in the manufacture of animal feeds from payment of VAT,” Rotich said.

“I also intend to remove all other levies, including levies charged by the National Environmental Management Authority and National Construction Authority in order to reduce the cost of doing business,” Rotich said.

The government has also moved to arrest the increasing closure of iron and steel mills due to rising cheaper imports. B games virus Importers of iron and steel products available in the East African Community bloc will now have to pay Sh20,000 ($200) per tonne in a protectionist measure for local industry.

Manufacturers of specialised air-conditioning equipment – heating, ventilation and air-conditioners – recommended by the World Health Organization have also been exempted from duty.

To boost the contribution of the Export Processing Zones Scheme to economic growth, Rotich has stayed 25 per cent import duty on garments and leather footwear imported from the Common Market for Eastern and Southern Africa. Gas bubble in throat The same products procured from EPZs will be exempted from VAT.

The country’s finance chief has also proposed to review the blanket Sh200,000 excise duty on vehicle imports that are more than three years old and Sh150,000 duty on those less than three years.

The introduction of the new levies in the Excise Duty 2015, enforced last December, has been seen as unfair, inequitable and punitive. Gas vs electric oven running cost This is because it resulted in high taxes for importers of low-value vehicles, but less for high-value, luxurious vehicles.

“In order to address the situation, I propose to amend the Excise Duty Act, 2015 to remove specific rate of duty and introduce ad valorem rate of 20 per cent based on the value of the vehicle,” Rotich said.

The cost of cosmetics and grooming products is also set for a rise after Rotich proposed 10 per cent excise duty from July 1, in what he said was realigning to the excise regime in some EAC countries.

Entry fees into national parks and commissions to tour operators have been exempted from VAT levy to help the recovering domestic tourism sector, which has also been given Sh4.4 billion promotion package.

Besides, Rotich has proposed to increase Air Passenger Service Charges for external travel from $40 (Sh4,044) to $50 (Sh5,056), while internal travel charges is set to rise Sh500 to Sh600.

Proceeds from the increment will go into a special Tourism Promotion Fund for promotion of the sector, hard-hit by years of terrorism threats from al Shabaab militia.