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#BREAKING | #WhiteHouse officials clarify to CNBC Eamon Javers that all countries with #tradedeals will see the #Tariff rate drop to 10% including #India. The ad valorem rate of 10 percent as per the proclamation, is in effect for 150 days Shereen Bhan #TrumpTariffs #DonaldTrump #TrumpWatch

53,557 views • 5 months ago •via X (Twitter)

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Musings on Kenya's changes in pump prices & the VAT adjustment: This is a drastic u-turn by the National Treasury on how to cushion from a VAT perspective. · Just a fortnight ago, the idea was to switch VAT from being ad valorem to specific. The idea was that VAT on petroleum products will then switch from being pegged on the value of the product & be imposed based on the quantity of product. The idea here was to decouple tax from the rising cost/value (see clip from CS MBadi before the National Assembly). · Today, in a drastic U-turn the government has decided to adjust the rate from 16.0% to 13.0%. So we keep the rate as ad valorem, & offer a marginal decline on the standard rate What triggered this U-turn? · I suspect Supplementary Appropriations I 2025/26 & the Kes 1.3 trillion deficit (6.8% of GDP). The whole of the National Treasury's senior leadership is in Washington DC for talks with the IMF The rate · Sec6(1) of the VAT Act empowers the CS to reduce by up to 25.0%. So the CS had a window to reduce up to 12.0% (similar to COVID19 relief measures). Why 13.0%? Why deny the consumer that 100.0 bps? Operational Realities · Since the VAT rate for petroleum products is changing mid-month, the April 2026 VAT return will be chaotic for OMCs. · OMCs have to now effect changes to their ERPs effective midnight tonight to be sure that they align with the change in VAT rate for pricing. It will be interesting to watch · Suppose an OMC deals in both fuel & lubricants, as many do anyway. The lubricants are still at 16.0%, your fuel is on the new rate at 13.0%. That ERP system needs to be adjusted to capture both rates. It will be interesting to watch

Julians Amboko

48,239 views • 3 months ago