Being VAT-exempt means the meter sellers won't charge their customers VAT and buyers will not reclaim VAT.
Gas meters are a key accessory that measures the flow of liquefied petroleum gas (LPG) when cooking.
“It (the Act) also exempts the supply of gas meters from VAT to enhance access to clean energy by low-income households,” said a despatch from State House on Wednesday.
This follows the removal of VAT on cooking gas last year through the Finance Act, 2023 to help lower prices and, therefore, increase uptake of the commodity by households, businesses, and public institutions such as schools.
Following the tax removal, the cost of the commodity subsequently reduced from an average of Sh3,069 in June to Sh2,787 in July for the 13-kilogramme cylinder, handing a major relief to consumers.
However, prices of cooking gas have rallied in recent months driven primarily by rising global prices.
In March, prices rallied to a high of Sh3,231 for the 13-kilogramme cylinder, according to data from the Kenya National Bureau of Statistics (KNBS).
The government is keen on increasing the per capita consumption of LPG as part of efforts to grow the use of clean energy.
Growth policy
The State recently developed the LPG Growth Policy that seeks to transition a big number of households to the use of cooking gas.
The policy proposes that all housing developments provide room for liquefied petroleum gas reticulation infrastructure.
“This provision will be embedded as a prerequisite for approval of any housing development projects, including those under the Affordable Housing Programme,” says the Treasury.
