Govt Unveils Plan to Increase Taxes on Several Goods [LIST]

An image of Treasury PS Chris Kiptoo (left), with Treasury CS Njuguna Ndungu (centre) and KRA Commissioner General Githii Mburu during  a consultative meeting on January 17, 2023.
An image of Treasury PS Chris Kiptoo (left), with Treasury CS Njuguna Ndungu (centre) and KRA Commissioner General Githii Mburu during a consultative meeting on January 17, 2023.
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The National Treasury

The National Treasury and Economic Planning is proposing an increase in excise stamps on these goods.

Among the products to be affected by the proposal include cigarettes from Ksh 2.8 to Ksh 5.0, fruit juices from Ksh 0.6 to Ksh 2.2, and cosmetics from Ksh 0.6 to Ksh 2.5.

In a statement, the ministry, under the stewardship of Prof Njuguna Ndung'u, notified the public of the impending regulations.



“Every package of excisable goods manufactured or imported into Kenya listed in the first schedule to the regulations shall be affixed with an excise stamp,” read part of the statement.

 

5,000 bottles of sky-falls drinking water seized with fake excise stamps on Friday, March 26, 2021.
5,000 bottles of sky-falls drinking water seized with fake excise stamps on Friday, March 26, 2021.
Daily Nation

Among the products that will see a jump in excise stamp fee include;



Cigars, cigarettes, cheroots, cigarillos, and Electronic cigarettes containing tobacco or tobacco substitutes which will be subject to an excise stamp fee of Ksh 5 per stamp.

Wines including fortified wines, and other alcoholic beverages obtained by fermentation of fruits and compounded spirits of alcoholic strength exceeding 6% will be subject to a Ksh 5 fee per stamp.

Cosmetics and beauty products of tariff heading Nos. 3303, 3304, 3305 and 3307 would be subjected to a Ksh 2.5 fee per stamp.

Spirituous beverages of an alcoholic strength not exceeding 6%, Beer, Cider, Perry, Mead, Opaque beer, and mixtures of fermented beverages with non-alcoholic beverages will be put through a fee of Ksh 3 per stamp.

Interestingly, bottled or similarly, packaged waters were retained at Ksh 0.5 fee per stamp.

Notably, fruit juices (including grape must), and vegetable juices, unfermented and not containing added spirit, (whether or not containing added sugar) or other sweetening matter would be billed at Ksh 2.2 per stamp.

The same applied to other non-alcoholic beverages, not including fruit and vegetable juices would be charged the same as fruit juices.

In October 2022, President William Ruto directed a stop to the pilferage arising from revenues collected from excise stamps.

He observed that the tax agency was only selling 2.9 billion excise stamps against a projected 12 billion.

“We should be selling between 10 billion and 12 billion stamps but that is not happening currently,” he noted.

The government has been banking on the new generation of excise stamps to curb counterfeiting and seal revenue leaks.

In 2022, there were concerns that the Kenyan retail market was flooded with fake excise stamps, which was fuelling the growth of illicit trade, mainly on excisable goods.

President William Ruto and KRA General Commissioner Githu Mburu following proceedings during Taxpayers Day on October 28, 2022.
President William Ruto and KRA General Commissioner Githu Mburu following proceedings during Taxpayers Day on October 28, 2022.
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State House
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