The proposal to introduce the second option of 10 percent excise duty is contained in the Finance Bill, 2024 that is expected to be tabled in Parliament this month for debate and passage before the end of June. “The first schedule to the Excise Duty act is amended by deleting…the corresponding rate of excise duty and substituting thereof the following new description and corresponding rate of excise duty … tariff 10 percent of the value or Sh12,952.83 per unit whichever is higher,” the Bill reads in part. Also Read: Treasury hits bread with VATThe proposal will affect motorcycles priced at Sh130,000 and above and which will see their excise tax payable exceed the current flat rate based on the 10 percent to be introduced. Currently, imported motorcycles attract an excise duty of Sh12,952 per unit with the exception of motorcycle ambulances and those locally assembled. The firms have been targeting the growing demand as more Kenyans eye the units to set up the easy to start boda boda business amid high levels of unemployment.
){kind=link}