[Stoves] Business sickness (Teddy Kinyanjui)

[Traveller]

Dear Teddy:

Thank you so much. I must say I am delighted. It may hurt domestic biomass
stove producers who have to presumably pay higher prices for some inputs
(metal goods) which are subject to higher duties still. I also suspect the
urban LPG/charcoal price ratio has worsened; do you have any numbers?

Several times many years ago I had to opine on taxation of LPG in east
Africa (Ethiopia down to Mozambique). In 2006, it was about petroleum
products pricing for the whole East Africa economic community (I forget the
proper name) - Uganda, Tanzania, Ethiopia, Kenya and Rwanda; at the time
one or two of these had yet to join. I suggested temporary import and VAT
exemption on diesel for power generation (which happened in Uganda for the
private self-generators and in Rwanda and Uganda for the utility and rental
generators). I also suggested permanent import duty removal for LPG and
appliances, first in Ethiopia in 1992 (didn't happen) and Tanzania in 2002
(didn't happen; a German advisor had dismissed the government's idea
because LPG produced CO2). By 2005, Uganda had exempted LPG from import
duty; Kenya did in 2006 (p. 179, Kenya National Assembly Official Record (
Hansard) for July 4, 2006).I think Rwanda did in 2007. But import duties on
appliances and VAT on appliances and duties remained; glad to see them go.
Kenya should sell DALY gains to the Global Dalliance of Cooking Cops, and
reduction in non-renewable biomass fraction to the Gold Standard.

I had come across the following stories on Kenya a month ago. WLPGA and
IPEA are to be commended for pushing.  Now they should be asked to figure
out how to get the bulk (tanker) price of LPG in Nairobi to US$ 700/ton.
(Can you get us that price too? I imagine it's more like $1,200+/t.)

Nikhil

PS to Paul Anderson and Dr Anand Karve: LPG tax exemptions and even
subsidies are worth the support because people want and use LPG and
appliances (including pressure cooker). Is there an "improved" wood stove
for cooking that a million people have used half time a year over ten years?

** Don't save trees. Buy your local print newspapers and books. - Nikhil
Desai. **




http://www.theeastafrican.co.ke/business/Nairobi-mulls-tax-waiver-on-cooking-gas-/-/2560/3019138/-/opmkik/-/index.html

Nairobi mulls tax waiver on cooking gas

Posted  Saturday, January 2   2016 at  14:04

LPG attracts a 16 per cent VAT, a railways development levy of 1.5 per cent
and import declaration fee of 2.25 per cent. Imported cylinders and
appliances attract 16 per cent VAT and import duty of 25 per cent.

A 6kg cylinder filled with LPG retails for about Ksh1,400 ($140) while the
13kg cylinder costs about Ksh2,500 ($250) in Nairobi.

Alex Evans, the chairman of the New York-based operating committee of GLPGP
said that Kenya’s forest cover is depleted due to over dependence on wood
fuel.

The Ministry of Energy said Ksh642 million ($64.2 million) has been
budgeted for the promotion of efficiency in the conversion and utilisation
of biomass energy and waste.
http://www.lpgbusinessreview.com/2015/06/26/kenyas-move-towards-lpg/



---------
(India +91) 909 995 2080

On Tue, Aug 2, 2016 at 12:43 AM, Cookswell Jikos <cookswelljikos at gmail.com>
wrote:

> Hi Nikhil,
>
> In light of this interesting email chain what are your thoughts on this
> recent development (in Kenya) .
>
> ''Import duties on cookstoves and fuels
>
> The government also reduced the import duty on energy efficient cookstoves
> from 25% to 10%, thus aligning them with similar cookstoves and cookers
> that use gas, electricity, and other fuels that currently attract a 10%
> import duty. The benefit of this reduced cost is expected to be passed on
> to consumers, encouraging the purchase of more efficient stoves and
> enabling the further growth of the companies that design, produce, and
> distribute these household products that have a myriad of positive impacts
> for consumers and the environment.''
> http://cleancookstoves.org/about/news/06-22-2016-kenya-drops-trade-tax-barriers-to-aid-adoption-of-cleaner-cooking-technologies.html
>
>
> Teddy Kinyanjui.
>
> *Cookswell Jikos*
> www.cookswell.co.ke
> www.facebook.com/CookswellJikos
> www.kenyacharcoal.blogspot.com
> Mobile: +254 700 380 009
> Mobile: +254 700 905 913
> P.O. Box 1433, Nairobi 00606, Kenya
>
> Save trees - think twice before printing.
>
>>
>>
>>
>
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