The Treasury is under pressure from the International Monetary Fund (IMF) to double the value added tax (VAT) on all petroleum products in an effort to cut budget deficit and tame public borrowing.
The multilateral financier reckons that Kenya should impose a 16 percent VAT on fuels from the current eight percent when crude oil prices fall, signalling the fund is open for a delayed implementation to guard against growing public anger and pressure over soaring petroleum costs in the country.
