Jun 28, 2022

Mawazo Writing Africa

Writing about the main

KRA now takes Sh62 in tax for every litre of petrol sold

The tax officer collects Sh62.89 per liter of petrol, a 39% increase in tax revenue over the past two years that has made the Kenya Tax Agency (KRA) a major beneficiary of the rise in pump prices.


The KRA collected Sh45.1 in taxes and duties on gasoline in June 2020, compared to Sh51.6 last year. The tax official is now collecting Sh62.89, underscoring the impact of the tariffs on petrol and diesel prices.

The rise in crude oil prices and taxes have hit household budgets in an economic environment where costs Items have soared, pushing inflation to a 27-month high in May.

But it has improved KRA revenue, with taxes on fuel falling to 22.9 in June billion Shh, or 15.7 per cent of Kenya’s total average monthly levy of Sh145 billion.

This is more than triple the monthly subsidy of Sh7 billion offered by the state

Like other frontier economies, Kenya has been suffering from a surge in crude oil prices since last year, which has forced it to lower retail prices from April last year to lower.

The subsidy system is proving unsustainable and the Treasury warns it has started cutting government support, setting the stage for another rally in lo Calculate pump prices.

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