Two-year relief for motorists as Treasury suspends VAT on fuel

Motorists have been handed a two-year relief with the deferment of value added tax (VAT) on petroleum products, which pushes forward fuel price increases to September 2018 at the earliest.

The Finance Act 2016 assented to a week ago extended the exemption of the 16 per cent tax offering relief to motorists who had feared the new levy would once again push petrol prices above Sh100 per litre.