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Former Deputy Chief of Staff Eliud Owalo says that several levies significantly contribute to the high cost of fuel. [File, Standard]
Former Deputy Chief of Staff Eliud Owalo is proposing the reduction or scrapping of the 8 per cent Value Added Tax on petroleum products to cushion Kenyans from harsh economic times.
Owalo said that while such a move would result in short-term revenue losses for the government, the economic stimulus generated by lower fuel prices could offset part of the loss through increased economic activity and broader tax generation.
Addressing Journalists in Nairobi, he said that several levies significantly contribute to the high cost of fuel, including the Road Maintenance Levy and the Petroleum Development Levy (PDL), which despite being used for price stabilisation, serious questions continue to be raised regarding its application, transparency, and accountability.
