A looming cooking gas scarcity is likely in the coming days after the government raised import LPG taxes by more than Ksh.38,000.
Trucks carrying in LPG have been denied entry into Tanzania until the additional tariffs are paid, which the traders claim they were unaware of.
According to the importers, the Kenya Revenue Authority imposed the tax without warning, raising the taxes from $605 (Ksh.70,000) per ton of LPG to $930 (Ksh.108,000), a 325-dollar increase per truck, which the importers claim they would pass on to customers.
“We were not given any notice by KRA about the increase of the taxes, our trucks were just stopped at the border with customs demanding extra monies,” says Yusuf Hussein, the chairman Independent Gas Dealers Association.
Further, the truck drivers are worried for their safety stating that some of their tanks have started leaking LPG after staying in the sun for more than five days.
“We have been here since Friday and some of these trucks are leaking. We have abandoned some of them at the parking bay because we fear they might explode at any moment,” said Jamal Juma, a truck driver.
According to the Independent gas dealers, should KRA impose the new taxes, they will also be forced to push the hike to consumers.
This move, they say will push the prices of the 6KG gas which currently retails at Ksh.1,200 to 1500 and the 13KG gas which retails at Ksh.3000 to 3500.
“At the end of the day we are a business, if KRA pushes a cost to us, we have no option but to forward the same to our customers,” said Mr. Hussein.
On reaching out to KRA to comment on the increased taxes, there was no response behind the overnight tax increase.
The dealers say they buy their gas from Tanzania as it is cheaper compared to that which they buy from Mombasa which is purchased at a higher price from the source market.
