Kenyans are staring at more costly beer, juice, wine, water, and chocolates starting next month as the Kenya Revenue Authority (KRA) moves to implement the annual inflation adjustment of excise tax.
The Excise Duty Act 2015 proposes an adjustment in excise duty every year in consideration of the cost of living.
In relation to this, KRA said the Commissioner General will adjust the tax rates on the items using the average inflation rate for the financial year 2021/2022 of six decimal three per centum (6.3 per cent), as determined by the Kenya National Bureau of Statistics.
Goods and Services Subject to Addition of KRA’s Excise Tax
The new taxes will see the tax on a bottle of water go up from Sh6.6 per litre to Sh7.02, while juice sellers will part with Sh14.14 for every 12 litres, up from Sh13.3.
On the other hand, sugar confectionery taxes will rise from Sh40.3 for every 36 kilos to Sh42.9.
The tax for every two beer bottles or a litre of your favourite drink will increase to Sh142.4 from Sh134 and Sh4.06 for filtered cigarettes up from Sh3.82.
Further, KRA will increase the excise for wines demanding Sh243.4 for every 208 litres up from Sh229 and Sh356.4 for 278 litres of spirit from Sh335.
Other goods to be subjected to the tax increment include fuels and motor vehicles, while services include telephone and internet data services, fees charged for money transfer services, and other fees charged by financial institutions.
KRA had invited public submissions on the new inflation adjustments to be sent to the Commissioner General by the close of business on Friday, September 16. Once approved, the adjusted specific rates will be effective from October 1.
The adjustment signals tough times ahead for taxpayers already grappling with a high cost of living. The country’s inflation hit a record high of 8.5 per cent in August, attributed to high fuel and food prices.
