– Cigarettes and alcohol are always culprits subject to tax increase every fiscal year when treasury unveils a new budget
– Excise duty on cigarettes has been increased by KSh 8 and currently stands at KSh 61 per packet
– A 750ml bottle of wine will have its tax shoot to KSh 136 from KSh KSh 118 marking a KSh 18 rise
– The same tax on a 750ml bottle of whiskey will go up by KSh 24 to settle at KSh 182
– According to Rotich, revenue from excise tax has sharply dwindled over the years and the increase will help the taxman expand its tax base
Takers of wine, whiskey and cigarettes are set to dig deeper in their pocket for them to be able to purchase the products.
This emerged on Thursday, June 13 when Treasury CS Henry Rotich presented proposed 2019/20 budget before Parliament. The budget slapped a 15% excise duty tax on the commodities.
Rotich said the additional tax levied on the products will help the government fund its KSh 3 trillion budget.
” I propose to increase the rate of excise duty on cigarettes, wines and spirits by 15%. In other words, excise duty on alcohol and tobacco will be increased as follows: A 750ml bottle of wine will have an excise duty of KSh 136 which is KSh 18 more from the current rate.
The duty of a bottle of whiskey will go up by KSh 24 to KSh 182 for a 750ml bottle. The excise duty for a packet of 20 cigarettes will increase by KSh 8 to KSh 61 per packet,” the treasury boss revealed.
In his speech, Rotich said government revenue from excise duty had sharply declined from about 3% of GDP in 2003 to 2004 to 2% between 2017 and 2018.
The CS further proposed a 10% excise duty on betting for every amount staked in a bid to curb the negative impacts of gambling in society.
Betting activities, the CS said were growing and expanding fast with tremendous negative impact to the society.
“Betting has become widespread in our society and its expansion has had negative social effects, particularly to the young and vulnerable members of our society.
In order to curtail the negative effects arising from betting activities, I propose to introduce excise duty on betting activities at the rate of ten percent of the amount staked,” he stated.
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