Kenyans will pay more for alcohol, cigarettes, and cosmetic products in the coming months, should the new proposal by the National Treasury and Economic Planning to increase excise stamp fees on these products sail through.
Under the proposed Excise Duty (Excisable Goods Management System) (Amendment) Regulations, 2023, the Kenya Revenue Authority (KRA) is expected to hike excise stamp fees on cigarettes and tobacco products, wines, and compounded spirits of alcoholic strength exceeding 6 percent.
Excise stamp fee on Cigars, cheroots, cigarillos, containing tobacco or tobacco substitutes, and cigarettes and tobacco products or tobacco substitute products will increase to 5 shillings from the current 2.8 shillings.
The fee will also see the excise stamp fee of electronic cigarettes and other nicotine delivery devices, Liquid nicotine for electronic cigarettes, and Products containing nicotine or nicotine substitutes intended for inhalation without combustion or oral application increase to 5 shillings.
Meanwhile, the excise stamp fee on wines and other alcoholic beverages obtained by fermentation of fruits, and compounded spirits of alcoholic strength exceeding 6 percent will increase to 5 shillings from 2.80 shillings.
Consumers will also pay 3 shillings more for spirituous beverages of an alcoholic strength not exceeding 6 percent as well as beer, Cider, Perry, Mead, Opaque beer, and mixtures of fermented beverages with non-alcoholic beverages. The stamp fee on bottled water is capped at 0.5 shillings.
On the other hand, the fee on other non-alcoholic beverages, fruit juices, and vegetable juices unfermented and not containing added spirit will more than double to 2.2 shillings from the current 0.60 shillings.
On cosmetic and beauty products, KRA seeks to increase the cost of an excise stamp from 0.60 shillings to 2.50 shillings.
The Kenya Revenue Authority has invited interested members of the public and stakeholders to submit their inputs and comments for consideration in the finalizing of the regulations before 3rd February 2023.
The new proposal comes barely 5 months after the taxman adjusted the annual inflation tax on excisable goods like beer, bottled water, and juice by 6.3 percent.
The October review saw duty on a liter of beer increase by 8.44 shillings to 142.44 shillings, wine (14.43 shillings to 243.43 shillings), spirits like whisky (21.12 shillings to 356.42 shillings), juices (0.84 shillings to 14.14 shillings) and bottled water (0.38 to 6.41 shillings).
The president William Ruto-led administration is keen on its quest to raise additional revenue amid depressed collection.
Related Content: Excise Duty on Beer, Water to Increase By 6.3% From October 2022