Bill exempts fuel from excise review, halves VAT to tame prices

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An attendant at a fuel station in Nairobi. FILE PHOTO | NMG

Fuel will be exempted from the annual review of inflation tax while two levies charged on diesel and petrol will fall by half if Parliament adopts proposed changes to the law aimed at lowering pump prices.

The National Assembly committee on Finance and National Planning says fuel should be exempted from the annual adjustment and Value Added Tax (VAT) on petroleum products reduced from eight to four percent.

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Note: The results are not exact but very close to the actual.