KRA excludes petroleum products from 6.3% inflation adjustment excise duty

Kenya Revenue Authority Commissioner General James Githii Mburu has announced the exclusion of petroleum products from the 6.3% inflation adjustment excise duty.

Mburu said that only petroleum products were removed from the list of items affected by the 6.3% inflation adjustment excise duty.

He was speaking during the launch of the Taxpayers Month on October 3, 2022, where he explained that the move was necessitated by the high cost of fuel.

“The only category we are going to leave out is petroleum products because of the current high prices,” Mburu said.

Motorists queueing for fuel at a petrol station Pulse Live Kenya

Currently Super retails at Sh179.30, diesel at Sh165 and Kerosene at Sh147.94 in Nairobi.

The tax increase on the various products took effect on October 1, 2022, after Kenyans unsuccessfully tried to convince KRA to drop the plan.

The move caused an increase in prices on motorcycles, alcoholic and non-alcoholic beverages, cosmetics, SIM cards, motorcycles, rawhide and skins, among others.

The proposed 6.3% inflation adjustment was mooted to cushion the government as Kenya’s currency loses value as the price of goods increases.

KRA also celebrated the launch of KRA - TV, a web-based platform for taxpayers to engage with the authority.

READ: KRA collects highest revenue in history

“During the 2022 Taxpayers’ Month launch, KRA unveiled its web-based TV dubbed ‘KRA TV’. This web-based TV will create a platform for taxpayers’ engagements and enable KRA to receive feedback for consistent improvement of service delivery for enhanced compliance,” a statement from the taxman read.

Mburu said that the authority shall be more agile and facilitate taxpayers to meet their obligations.

Attendees engaging each other at the launch of the Taxpayers Month on October 3, 2022 Pulse Live Kenya

“As KRA transitions to Kenya Revenue Service (KRS), we want to assure our taxpayers that their tax needs are our priority. For instance, the authority has embarked on an aggressive programme to engage non-compliant taxpayers and no businesses will be closed,” said the Commissioner General.

He also assured that KRA will simplify its processes and adopt a friendlier approach in interacting with taxpayers.