Your question: Is cooking gas taxable in Kenya?

Kenyan households have since June 2016 been enjoying low cooking gas prices after the Treasury scrapped the tax on LPG to cut costs and boost uptake among the poor who rely on dirty kerosene and charcoal for cooking.

Is cooking gas Vatable in Kenya?


Since mid-2016, Kenyans have been buying liquefied petroleum gas, popularly known as cooking gas, at costs that exclude VAT.

How fuel is taxed in Kenya?

85, respectively, in Nairobi, as Kenyans pay nine different taxes and levies on the products. … 25 per litre as Petroleum Regulatory Levy. They are also paying Sh0. 95 per litre of petrol as the Railway Development Levy, Sh18 per litre of kerosene as anti-adulteration levy and Sh0.

Is there VAT on LPG gas?

Supplies of gas

The supply of LPG to customers is liable to VAT at the reduced rate, providing the customer cannot store more than two tonnes of gas at any time.

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Can you claim VAT on fuel in Kenya?

Petroleum products and Kenyans, in general, are overtaxed. It is only those businesses that have a taxable turnover of five (5) million for twelve (12) months who are expected to register for VAT. … VAT on petrol is a deductible input for VAT registered businesses.

Is milk zero-rated or exempt from VAT?

All hot beverages and any drinks, including zero-rated drinks sold for consumption on your premises are standard rated. Cold drinks that are zero-rated in their own right, for example, milk and are supplied for off-premises consumption can be treated as zero-rated.

How do you calculate VAT on fuel?

Step 1: Take the fuel advisory rate and multiply by the number of business miles claimed. This gives us the total fuel amount. Step 2: Take the total fuel amount and multiply by the VAT fraction. The VAT rate is currently 20% so the VAT fraction is currently 20/120 which can by reduced down to 1/6th.

Is medical equipment Vatable Kenya?

Exempt supplies – are non-vatable supplies mainly food items, medical and agricultural supplies; The remainder of supplies taxable at the general rate currently 16%.

Is bread Vatable in Kenya?

Items that were previously zero-rated, but are now subject to VAT at 14 per cent include supply of ordinary bread, and supply of liquefied petroleum gas.

What tax is applicable on petrol?

The central government currently earns an excise duty of ₹32.90 per litre of petrol sold and ₹31.80 per litre of diesel sold, respectively. The state governments charge a value-added tax or a sales tax on every litre of petrol and diesel sold, as well. The rate varies across states. Take a look at the chart below.

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Do you pay VAT on bottled gas?

At home people pay 5% VAT for gas and electric. Gas is used for cooking and heating.

Is VAT charged on domestic gas and electricity?

Should I pay VAT on gas and electricity for business? VAT is payable on all business and domestic energy usage. This means you’ll pay VAT on any gas and electricity you use for work purposes, whether you’re on business premises or working from home.

Is gas exempt from VAT?

The supply of fuel, diesel and illuminating kerosene is specifically zero-rated in terms of sections 11(1)(h) and (l) of the VAT Act, read with Part 5A of Schedule 1 of the Customs and Excise Act. … The supply of liquid gas by a VAT vendor is therefore a standard rated supply (i.e. subject to VAT at (currently) 14%)).

Are face masks zero-rated in Kenya?

They amended the VAT Act to retain some of the essential items such as milk and milk products and bread at zero rate. … Personal protective equipment including face masks are now exempt from Value Added Tax.

What is the VAT rate for petroleum products in Kenya?

Reports that one of the conditions for the recent International Monetary Fund (IMF) loan to Kenya is 16 percent value added tax (VAT) on all petroleum products are disconcerting.

Is milk taxed in Kenya?

Summary. Traders importing milk from the East African Community (EAC) will have to pay 10 percent of the value as tax if proposed regulations come into force.

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