Motorists Dump Cars Leaving KRA Counting Losses
The rise in fuel prices in the country has negatively affected the Tax man.
According to the Kenya Revenue Authority (KRA), fuel revenues for the period between July and September 2023 is estimated at 84.8 per cent.
This they say resulted into a deficit of whooping Ksh. 12.9 billion compared to their set target.
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“Oil revenue recorded a performance rate of 84.8 per cent in July-September 2023 for a deficit of Sh12.9 billion against target, and a decline of 8.6 per cent over July-September 2022 collections,” said Mr Wattanga.
“The tax category’s performance was affected by a decline in overall oil volumes by 12.4 per cent, attributed to a drop in fuel consumption in January-June 2023 driven by high pump prices that depressed demand,”KRA stated.
The steady rise of the petroleum products in the country has seen most citizens ditch their vehicles to keep up with the high cost of living hence the loss experienced by KRA.
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“High fuel landing costs impact the eventual retail price. Landing costs are mainly driven by international oil prices that have been on the rise since July 2023, and a continual depreciation of the exchange rate,” said KRA.
High fuel prices in its recent effect made Kenya Railways hike SGR fares.
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