Tariff Cut To Boost Use Of Cooking Gas- Courtesy Of Daily Nation

Cooking gas for sale. Tariff on cooking gas has been reduced to promote use of gas. Photo/FILE

 

By KENNEDY SENELWA
Posted Tuesday, June 15 2010 at 15:40

The common external tariff levied on gas cookers has been reduced by 15 per cent.

The government’s action aims to cut many families’ dependence on firewood and charcoal as a source of energy.

The Petroleum Institute of East Africa said the tariff was reduced from 25 per cent to 10 per cent to promote use of gas.

Still high

The institute’s general manager, Ms Wanjiku Manyara, said Finance minister Uhuru Kenyatta in the 2010 Budget took the move because Kenya faces deforestation as gas remains inaccessible to many people.

She said initial investment in gas cylinders is still high because the government levies 16 per cent Value Added Tax and 25 per cent import duty. Due to this, less than 10 per cent of Kenyans have adopted this mode of home fuel.

The government previously levied 16 per cent value added tax and 25 per import duty on cylinders, cookers, and related components.

Ms Wanjiku said marketers had in a proposal sent to the government called for removal of import duties and VAT on liquefied petroleum gas (LPG) cylinders, cookers, and other related accessories in the 2010 Budget.

“The move would have been in line with an East African Community recommendation for removal of taxes on LPG appliances to make gas more affordable and increase its consumption,” she said.

Reduced cost

The National Oil Corporation of Kenya said the removal of taxes would have reduced cost and encouraged more people to make first time purchases of gas cylinders and cookers.

Managing director Mwendia Nyaga said the firm has consolidated and enhanced its market share of its Supa Gas brand, adding that cylinders are available through a network of 60 petrol stations.

He said the state corporation has partnered with Uchumi Supermarket outlets and other authorised resellers of the cylinders that were launched with the standard valve in 2008.