Last Week in Taxes: Fuel-tax relief from Nairobi to La Paz (Issue #1)

In brief — three governments cut fuel taxes this week:

• Kenya cut VAT on fuel from 16% to 8% (15 April – 14 July 2026).
• Philippines suspended excise on LPG and kerosene for three months (from 17 April 2026).
• Bolivia restored the full 100% VAT credit on fuel purchases.

Three governments on three continents reached for the same lever this week: indirect tax on fuel. None of them touched a headline VAT rate or an e-invoicing mandate — instead they adjusted the tax that sits on every litre of fuel, where relief is felt fastest.

Middle East & Africa

Kenya — VAT: fuel VAT halved to 8% for three months

Kenya cut VAT on petroleum products from 16% to 8% in two quick steps — Legal Notice No. 69 (16%→13%, dated 14 April) and, a day later, Legal Notice No. 70 (13%→8%, dated 15 April). The 8% rate runs 15 April to 14 July 2026. (Kenya Law)

What it means: This is a temporary, targeted cut on fuel — not a change to Kenya’s standard 16% VAT, which still applies to everything else. If you price fuel-linked supplies into or out of Kenya, the 8% window closes on 14 July; plan for the rate to step back up unless it is extended.

Asia–Pacific

Philippines — Excise: LPG and kerosene excise suspended for three months

President Marcos issued Executive Order No. 114 (signed 16 April) suspending excise taxes on LPG and kerosene for three months under RA 12316, and the Bureau of Internal Revenue implemented it through Revenue Regulations No. 3-2026, effective on publication 17 April. (Supreme Court E-Library)

What it means: Cooking-gas and household-fuel excise — not VAT — is the lever here. The carve-outs matter: LPG used as petrochemical feedstock and kerosene used as aviation fuel stay taxed. It is a three-month measure, so treat the relief as a window, not a new baseline.

Americas

Bolivia — VAT: full fuel VAT credit restored

Bolivia’s tax authority (SIN) restored the full 100% VAT fiscal credit on gasoline and diesel, scrapping the earlier cap that let businesses reclaim only 70% of the input VAT. (SIN)

What it means: This one is a recovery change, not a rate change — the VAT on fuel is unchanged, but VAT-registered buyers can now deduct all of it instead of losing 30%. For Bolivian businesses that run fleets or generators, that is a direct cut in the real cost of fuel.

The thread

• Fuel is where governments reach first. A rate cut (Kenya), an excise suspension (Philippines) and an input-credit restoration (Bolivia) are three different mechanisms aimed at the same outcome — lower delivered fuel cost — because fuel tax changes are felt within days.
• Read the mechanism, not just the headline. “VAT cut”, “excise suspended” and “credit restored” hit different lines on an invoice and a return. Only Kenya changed a rate a customer sees; Bolivia’s change shows up purely in input-VAT recovery.
• Most of these are temporary. Two of the three are explicitly time-boxed. Diary the end dates.

Sources

• Kenya: Kenya Law — Legal Notice No. 69 (VAT Amendment of Rate of Tax) Order, 2026.
• Philippines: Supreme Court E-Library — Executive Order No. 114.
• Bolivia: SIN — 100% del crédito fiscal en facturas de combustible.

All sources captured 16 June 2026.