Treasury Cabinet Secretary (CS), Henry Rotich, announced a proposed 15 percent increase in sin tax on Thursday.
Speaking during the national budget reading at the National Assembly, CS Rotich explained that the increase was in response to a drop in generated revenue.
"In order to address the decline of excise revenues, I propose to increase the rate of excise duty on cigarettes, wines and spirits by 15 percent," he asserted.
The increase would result in Ksh 18 increase on a 750ml bottle of wine, Ksh 24 increase on a 750 ml bottle of whiskey and Ksh 8 price increase on a packet of cigarettes.
The national assembly was called to order by Speaker, Justin Muturi when CS Rotich read through the various sin tax increases after they started murmuring among themselves.
"Order members Order! Whether you are excited or affected," the National Assembly speaker remarked.
In yet another move that caused a stir, CS Rotich announced a new excise duty that is set to affect the millions of sports betting fans across the country.
He cited the negative effects of gambling, adding that its negative effects, especially on the youth, was the key reason as to why the government had decided to impose a 10 percent excise duty on any amount staked.
"In order to curtail the negative effects arising from betting, I have proposed a 10% excise tax on staked mounts," CS Rotich declared.
This would imply that for every Ksh 100 an individual places as his/her stake while betting, Ksh 10 would be remitted to the government as tax.
