Traders Sue the Government Over 16% VAT on Cooking Gas

Kenyans are up in arms after President Uhuru Kenyatta signed the Finance Bill, 2021, into law leading to a hike in the cost of various commodities, including cooking gas.

Traders Sue the Government Over 16% VAT on Cooking Gas

The introduction of a 16% VAT on liquefied petroleum gas (LPG) has effectively seen the cost of a 13-kilogram cylinder shoot up by more than KSh 350.

With the cost of living already going up amid the coronavirus pandemic, Kenyans have protested the increase as they would have to dig deeper into their pockets.

The Energy Dealers Association (EDA) has since moved to court to halt the government from implementing the recently introduced 16% VAT on cooking gas.

The association through the secretary-general Kepher Odongo on Friday, July 2, filed a petition at the High Court through Okoth and Co. Advocates where he petitioned the court to stay the implementation of the new levy.

According to Odongo, he stated that by introducing the tax on LPF would directly hike the cost of living, as it is a basic commodity required used daily by millions of households in Kenya.