GOVT CUTS LPG RETAIL PRICE

Government through the Ministry of Finance, Economic Planning and Development has announced new tax measures for customs and exercise which became effective on the midnight of 9 September 2019.

In a press release available to this publication, among the measures include introduction of a zero rate value added Tax (VAT) on Liquefied Petroleum Gas and gas cylinders.

“Previously, Liquefied Petroleum Gas attracted VAT at a rate of 16.5%, therefore introduction of a zero rate has necessitated a downward revision of the maximum allowed retail price of LPG. The old retail price was 2,048.56, the new retail price is 1,744.75 making a percentage of- 17.41,”reads the statement in part.

The Ministry is therefore asking all consumers who purchased Liquefied Petroleum Gas at a price of 2,048.56 after the effective dates of amendments to the customs and excise (Tariffs) order are free to claim the excess amount paid upon producing validation of a receipt.