Passing on the benefits of the tax reduction to LPG consumers


Passing on the benefits of the tax reduction to LPG consumers

An attendant organizes gas cylinders after unloading them from a truck in Elburgon, Nakuru on July 21, 2022. PHOTO | JOHN NJOROGE | NMG

It is unethical for oil marketers to exploit tax cuts to line their pockets instead of benefiting consumers.

The tax cut was intended to protect homes and deprive consumers of the benefits of what has continued to drive up the cost of living.

The high prices have persisted despite the halving of the VAT on liquefied petroleum gas (LPG) to eight per cent from July 1, which was expected to impact Kenyans hit by a spike in the cost of living.

Businesses tend to raise the prices of goods whenever taxes rise, but fail to lower them when the reverse occurs. Some claim that they have already purchased inventory and need to liquidate inventory.

The government’s decision to waive some of the taxes was intended to protect homes from the current period of high inflation.

Continued high prices have continued to squeeze budgets and push Kenyans towards dirty fuels like charcoal.

The government should follow up on the application of tax cuts through relevant consumer protection bodies, such as the Competition Authority of Kenya, to ensure that oil traders pass on the benefits. on buyers.