NAIROBI: Kenyans will pay a 16 per cent value added tax on all petroleum products from Saturday, the revenue authority said, a move that defies a parliamentary vote to delay the tax for two years.

Kenyan lawmakers on Thursday voted to delay the tax, which had already been postponed several times, citing the high cost of living. That was seen as a blow to government efforts to raise revenues through higher taxes.

But the revenue authority said in a statement that it was proceeding based on previously approved budget bills.

“Kenya Revenue Authority informs the general public, oil marketers, resellers and retailers that VAT will be charged on all petroleum products at a rate of 16pc on all transactions with effect from Sept 1, 2018,” it said.

To become law, the bill on delaying the tax that was passed in parliament still needs approval by President Uhuru Kenyatta.

Published in Dawn, September 2nd, 2018