MPS Rejects Move to Increase Levies on Diesel

The National Assembly’s Committee on Delegated Legislation has recommended rejection of the proposed amendments to the Petroleum Development Levy by the Ministry of Petroleum and Mining seeking to increase levies on diesel.

MPS Rejects Move to Increase Levies on Diesel

The Ministry of Petroleum and Mining has proposed to amend the Petroleum Development Levy order 2021 that sought to include Diesel in the schedule.

This is after the National Assembly Committee on Delegated Legislation cited contravention of statutory timelines, error in omission, and lack of public participation as some of the reasons for rejection of the proposed amendments.

The committee noted that owing to the implications on the rates chargeable on diesel, the ministry ought to have conducted inclusive public participation as required under the constitution.

If the National Assembly, adopts the Committee’s recommendation to annul in entirety the proposed amendments, it means owners of diesel-run engines will not be subject to the 5,400 shillings levy for every 1,000 liters of diesel as proposed by the Ministry of Petroleum and Mining.

Focus is now on the floor of the house ahead of the debate of the report.