Double blow to Kenyans as EPRA fails to effect changes to two fuel levies
3 min read
EPRA fails to effect changes to two fuel levies (Import Declaration Fee (IDF) and Railway Development Levy (RDL)) that were amended in the Finance Act 2023
EPRA fails to effect changes to two fuel levies (Import Declaration Fee (IDF) and Railway Development Levy (RDL)) that were amended in the Finance Act 2023.
Kenyans are overpaying for fuel after the Energy and Petroleum Regulatory Authority (Epra) failed to implement modifications to two taxes, as required by the Finance Act 2023, in its most recent review of pump pricing.
Kenyans have been forced to pay unauthorized levies as a result of Epra’s hasty decision to hold the Import Declaration Fee (IDF) and Railway Development Levy (RDL) at the prior rates.
In order to protect Kenyans from the anticipated fuel price increase following the doubling of Value Added Tax (VAT), the Finance Act of 2023 amended the Miscellaneous Fees and Levies Act of 2016 by reducing IDF from 3.5 percent to 2.5 percent and RDL from 2.0 percent to 1.5 percent. The state referred to these reductions as offsets.
Due to EPRA’s omission, Kenyans have suffered more than they ought to have from the most recent review of pump pricing, which saw EPRA increase the costs of super petrol, diesel, and kerosene by Sh13.49, Sh12.29, and Sh11.96, respectively.
The price breakdown released by Epra on Friday shows that the market regulator is charging motorists an IDF of Sh3.40, Sh3.33, and Sh3.32 per litre of super petrol, diesel, and kerosene, respectively, unchanged from the amount set during the June 14 price review.
UK offers cattle to Maasai people as reparations for injustices during colonialism
Ruto details on CNN how he defeated both Uhuru and Raila in 2022 general election
Kenya breaches statutory debt ceiling of KSh10trillion
Ruto dodges question on Russia Ukraine war during CNN interview
Similarly, the market regulator left RDL unchanged at Sh1.94, Sh1.90, and Sh1.89 per litre of super petrol, diesel, and kerosene, respectively.
EPRA has not formally communicated why it has selectively applied the changes in the Finance Act 2023 but sources familiar with the matter indicate that this is because the price change effected on June 30 applies to stock that arrived in the country based on the June 14 review cycle.
“RDL and IDF are levies, not taxes. They are imposed based on the customs value of the goods imported into the country at a given time. So, we are dealing with stock that already arrived in the country, and the two were determined based on the customs value. It is in the next review that Kenyans should expect to start seeing the impact of the reduction in IDF and RDL,” a person familiar with the matter said.
The Kenya Kwanza government is banking on the reduction in RDL and IDF to help tame the increase in inflation which is expected following the doubling of VAT on petroleum products.
Also read,
Ruto playing ‘political gimmick’ with Kenyans in rejecting salary increase
Creation of Ruto’s 50 CAS unconstitutional, High Court rules
Muammar Gaddafi’s Son Hannibal hospitalized in ‘critical condition’ after hunger strike
Ruto mocks Azimio over the resumption of anti-government protests
Ruto defends lift on six-year logging ban despite environmental concerns
Follow us
