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KRA To Up Tax On Prices of Cigarettes, Beer and Fuel

BY Soko Directory Team · July 3, 2019 10:07 am

It is a shocker to motorists, beer and fuel consumers as the prices of excisable commodities are set to increase following the tax adjustment by the Kenya Revenue Authority (KRA).

KRA had earlier announced that it would set a 5.1 percent of the tax on these commodities at the beginning of the new financial year 2019-2020.

The revenue collection by KRA is expected to have increased by 30 billion shillings at the end of this financial year from new taxes only. The overall projection of tax is set at 1.8 trillion shillings that are to be collected.

Manufacturers and importers of excisable goods were earlier notified by KRA that the tax adjustment would take effect at the beginning of the current financial year but it has since delayed.

The Treasury cabinet secretary, Henry Rotich, during his budget speech last month, had proposed on hiking up the prices of commodities such as Cigarette, wines, and spirits, arguing that the inflation adjustment was not adequate to cover for the declining excise revenue.

The excise duties will be charged as follows;

The prices of Motorcycles will increase by 543 shillings, a liter of beer will increase by 5.44 shillings wines and spirits will be levied at 165.96 and 221.28 respectively, filtered and non-filtered cigarettes will go at 2,766 shillings and 1,893 shillings respectively. Diesel and kerosene will increase by 0.53 shillings per liter.

The adjustments, however, have exempted the motorcycle ambulances and the locally assembled bikes.

The Government Printer had already received the gazette notice by the KRA for publication, and the inflation tax adjustment is set to take effect at any given day.

Soko Directory is a Financial and Markets digital portal that tracks brands, listed firms on the NSE, SMEs and trend setters in the markets eco-system. Find us on Facebook: facebook.com/SokoDirectory and on Twitter: twitter.com/SokoDirectory

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