The tax exemptions on cooking gas were captured in proposals made during his Cabinet meeting on Thursday, April 27 whereby the government proposed exempting Liquefied Petroleum Gas (LPG) from Value Added Tax (VAT), as Ruto had promised on Thursday, March 2.
President William Ruto on Sunday, May 14 admitted that Kenyans would not benefit from the reduced prices of cooking gas by June 1, 2023, as he had promised.
Addressing the media during a joint interview at State House, Nairobi, the Head of State acknowledged that the promise to reduce the price of cooking gas to a range of Ksh300 minimum and Ksh500 maximum was over-ambitious.
He noted that the 2022/23 supplementary budget must first be passed before moving to lower the cooking gas prices and effect the same across markets in the country.
“June 1 is not possible because we must first pass the budget. It would have been possible if it was passed in the supplementary budget,” he stated.
Amidst pressure to reduce the cooking gas prices, Ruto admitted that initial attempts to remove taxes on gas did not succeed in the supplementary budget, thus the promise would take longer to be fulfilled.
”We realised that if we had to do that then it would have required that we amend some law but as you can see we have that in the current budget,” he went on.
Ruto clarified that the price of the gas cylinder would be the one to be reduced as compared to the cooking gas itself, which would make it easier for Kenyans to refill.
”We have to remove all the illegal fillers because they are undermining our efforts. What we were reducing between Ksh300-Ksh500 is the gas cylinder then you will be able to refill gas,’‘ Ruto said.
The tax exemptions on cooking gas were captured in proposals made during his Cabinet meeting on Thursday, April 27 whereby the government proposed exempting Liquefied Petroleum Gas (LPG) from Value Added Tax (VAT), as Ruto had promised on Thursday, March 2
The strategy of scrapping VAT from LPG gas would be achieved through the Bottom-Up Economic Transformation Budget for the Financial Year of 2023/2024.
Speaking during the launch of the Women Enterprise Fund and the second product of the Hustler Fund at KICC, Nairobi on Thursday, March 2, President Ruto indicated that the removal of the tax on gas would allow Kenyans to buy more gas.
“I have stated that from the month of June, we will put plans in place to ensure that women use clean energy. The first thing that we will do is remove the tax on gas. That eight per cent the government takes will be removed to allow more Kenyans to have gas.
“Today, Kenyans are buying gas at Ksh2,800 and we are saying that we shall put government money in the sector. The 6kg will be Ksh500 or Ksh300,” he said.
Ruto also revealed plans to scrap the use of wood fuel domestically, warning of the health risks that come with using firewood, which produces smoke.