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Fuel Prices Relief: High Court Suspends Excise Duty Increment on Petroleum Products

TUKO 09/28/2021

  • Two Kenyans petitioned the court to stop the implementation of the new taxes
  • The petitioners accused both KRA and EPRA of not following the due process
  • Application of the new tax would have been a big blow to Kenyans already struggling with a high cost of living

Kenyans have been spared from paying more for fuel, after the High Court suspended the proposed increase of excise duty on petroleum products by Kenya Revenue Authority (KRA).

High court suspends excise duty increment on fuel. View pictures in App save up to 80% data.
Fueling car with petrol pump at a gas station. Photo: Getty Images.

The win for Kenyans follow a successful appeal by two Kenyans who moved to the court and petitioned it to stop the implementation of the new taxes.

Isaiah Odando and Wilson Yata, said such a tax would pile more pressure on the cost of living which was already in turmoil.

As reported by TUKO.co.ke, the petitioners accused both KRA and the Energy and Petroleum regulatory Authority for not following the due process.

MPs Now Seek Kenyans' Views on Monthly Review of Fuel Prices After Uproar
“They have ignored the proper public participation of Kenyans before adjusting the rates of excise duty,” part of the court papers read.

Court Decision

On Monday, Justice James Makau said that if the Authority implemented the proposed increment, Kenyans would be exposed to danger, according to Business Daily.

KRA’s proposal was in line with the law that requires that excise duty be revised upwards, to match the rate of inflation in the 12 months to June.

According to the publication, the taxman will have to get MPs to approve the proposal before implementing it.

The application of the law would have been a huge blow to Kenyans who are already grappling with high prices on fuel.

On September 14th, the Energy and Petroleum Regulatory Authority increased the price of the commodity to a historical high.

Uhuru Kenyatta's Gov't Is Turning Kenyans into Slaves Through Heavy Taxation, James Orengo

Super petrol is currently retailing at KSh 134, diesel at KSh 115.6 and kerosene at KSh 110.82 in Nairobi.

Is monthly review necessary?

The court’s decision comes less than a day after the Finance Committee said it would seek the views of Kenyans in whether it should be reviewing fuel prices monthly.

The committee’s Chair Gladys Wanga earlier Monday said parliament would also be seeking to lower the price of petroleum products.

“This is to determine whether the pricing of petroleum should be done monthly or whether the period should be increased.”

The committee, therefore, has 14 days to conclude the inquiry to ascertain whether there are other causes that have contributed to the increase in prices, apart from taxes and levies.

Source: Tuko

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