For the first time in the fiscal year between July 2023 and June 2024, revenue from the gasoline anti-adulteration fee is anticipated to surpass the Sh4 billion threshold. In contrast to the Sh3.8 billion anticipated to be collected in the fiscal year that concluded last week, the Treasury forecasts that it will collect Sh4.2 billion in the next fiscal year 2023/24. The Miscellaneous Fees and Levies Act of 2016 was amended to create the levy, which was implemented through the Finance Act of 2018.
It was set at Sh18 per liter of imported lighting kerosene with the goal of combating the vice of adulterated diesel by coordinating the prices of these fuels. The Business Daily was previously informed by the Energy and Petroleum Regulatory Authority (EPRA) that the adoption of the tax has raised compliance levels by eliminating individuals who engaged in adulteration by taking advantage of the price difference between kerosene and diesel.
"Before September 2018, the price differential between diesel and kerosene was nearly Sh18 to Sh20, and naturally, this provided the strongest motivation for those who were at the time involved in adulteration. According to Edward Kinyua, director of EPRA Petroleum and Gas, "The activity of adulteration has almost leveled out since the passage of the levy. According to Mr. Kinyua, "We also mark kerosene with another identifier that is not visible to the normal eye. These markets are chemically tested and cannot affect the product's specification or the consumer".