There are about 30 plastic bags companies in Nairobi alone. Vacuum bags for packing foods, juices, tea and coffee are, however, excluded from paying excise duty. "We suggest that the government rethinks the issue.”The amendments to the Excise Act 2015 which became effective June 9, has now been amended to include other plastic bags used interchangeably with the shopping bags. Manufacturers have warned of an imminent closure of plastic bags factories after the National Treasury ignored a proposal to reduce excise tax on packaging products under the Excise Act 2015, enforced December 1 last year. Wakiaga said about 12 companies in Nairobi have stopped production since last December, while some have slowed down after new tariffs increased the cost of plastic bags by 50 per cent.

Source: The Star June 20, 2016 04:52 UTC