Fuel prices are set to reduce soon after recommendations posed by MPs to cut the taxes.
In a report tabled yesterday, the MPs seek to amend the Energy (Petroleum Pricing) Regulations, 2010 and the Petroleum Development Act, 2019.
They proposed that the Value Added Tax (VAT) charged on petroleum products, should be lowered to four per cent.
“Amend the Value Added Tax Act, 2015 to reflect the change in the tax rate for petroleum and petroleum products,” the report read.
Homa Bay Woman Representative Gladys Wanga also pushed for the reduction of the Petroleum Development Levy on Petrol and Diesel from Shs 5.40 to Shs 2.90.
In the new reforms, MPs have advocated for the Petroleum Fund to be run by a board.
“We recommend specificity that the Fund shall be used for stabilization of fuel prices and matters relating to the development of common facilities for distribution or testing oil products,” the report read.
The National Assembly has further argued that the gross margins of oil marketing companies should drop from Shs 12 to Shs 9 per litre, with a new formula for the distribution of money from the Petroleum Fund to the companies officiated.
Meanwhile, the National Treasury was assigned to prepare Supplementary Estimates to show the reduction in revenue generated by the development.
By Evelyne Bosibori