The taxman is collecting Sh62.89 on every litre of petrol, a 39 percent jump in tax collections over the past two years that has made the Kenya Revenue Authority (KRA) a key beneficiary of the surge in pump prices.
The KRA collected Sh45.1 in taxes and levies in June 2020 from petrol, and Sh51.6 last year. The taxman is now collecting Sh62.89, underlining the impact of duties on driving petrol and diesel prices. The surge in crude oil prices and the taxes have hit household budgets in an economic setting where the costs of basic items have surged, sending inflation to a 27-month high in May.
