The inflationary adjustment on specific duty rates will hurt manufacturers and encourage illicit trade, the Kenya Association of Manufacturers (KAM) has warned. Kenya Revenue Authority(KRA) has announced new rates of excise duty on alcohol, cigarettes, water, imported sugar confectionery, imported white chocolate, motor cycles and fuel products. Both ad valorem (tax based on the assessed value of an item) and specific excise duty rates are very high in Kenya compared to Uganda and Tanzania, KAM notes. For example, excise tax per litre of beer in Kenya is Sh100.62, and Sh18.03 and Sh33.66 in Uganda and Tanzania, respectively. “ While the Big 4 Agenda seeks to grow manufacturing, the proposed increase in excise tax will only serve to undermine such efforts.

Source: The Star October 14, 2020 00:56 UTC