The National Treasury and Economic Planning propose raising excise stamp fees on some goods.
The treasury proposal will affect cigarettes ranging from KES 2.8 to KES 5.0, fruit juices ranging from KES 0.6 to KES 2.2, and cosmetics ranging from KES 0.6 to KES 2.5.
The ministry, led by Prof Njuguna Ndung’u, issued a statement informing 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,” said the treasury in a statement.
The items that will be increased in excise stamp fees are: Cigars, cigarettes, cheroots, cigarillos, and electronic cigarettes containing tobacco or tobacco substitutes will be subject to a KES 5 excise stamp fee.
Wines, including fortified wines and other alcoholic beverages derived from the fermentation of fruits and compounded spirits with an alcoholic strength more significant than 6%, will be subject to a KES 5 excise stamp fees.
Liquor beverages with an alcoholic strength of less than 6%, Beer, Cider, Perry, Mead, Opaque beer, and mixtures of fermented beverages and non-alcoholic beverages will be subject to a KES 3 stamp fee.
Cosmetics and beauty products falling under tariff headings 3303, 3304, 3305, and 3307 would incur a KES 2.5 fee per stamp.
Bottled or similarly packaged waters were retained at a fee of KES 0.5 per stamp.
Fruit juices (including grape) and vegetable juices that are unfermented and do not contain added spirit (whether or not they have added sugar) or other sweetening matter would be billed at KES 2.2 per stamp. Other non-alcoholic beverages, excluding fruit and vegetable juices, would be charged the same.
In October 2022, President William Ruto issued an order prohibiting the pilferage of excise stamp revenues.
He noted that the tax agency had only sold 2.9 billion excise stamps, compared to a projected 12 billion.
“We should be selling 10 billion to 12 billion stamps, but that is not happening right now,” he said.
The National Treasury is counting on the new excise stamp fees to reduce counterfeiting and plug revenue leaks.