The Kenya Revenue Authority has published new excise duty rates for various excisable goods and services to take effect beginning next week.
In a notice to all manufacturers, importers and suppliers, KRA said the adjusted rates introduced by the Tax Laws (Amendment) Act, 2024 will be implemented from December 27, 2024.
The changes affect a wide range of products, from tobacco to alcoholic beverages and imported goods.
The excise duty on imported sugar will increase from Sh5 to Sh7.50 per kilogram, with certain exemptions for pharmaceutical and sugar refinery imports.
Tobacco products, including cigarettes with filters and products containing nicotine intended for inhalation, will also see adjustments.
Cigarettes with filters will now be taxed Sh4,100 per mille, up from Sh4,067, while nicotine substitutes for inhalation will attract a charge of Sh2,000 per kilogram, up from Sh1,594.
This, however, excludes medicinal products approved by the Cabinet Secretary responsible for matters relating to health and other manufactured tobacco and manufactured tobacco substitutes that have been homogenised and reconstituted tobacco, tobacco extracts and essences, KRA said.
Liquid nicotine for electronic cigarettes, the taxman said, will be increased to Sh100 per millilitre from Sh70.
Other changes include an increase in the excise duty for imported sugar confectionery, which will rise to Sh85.82 per kilogram from Sh42.91.
Wines, including fortified wines and other alcoholic beverages obtained by fermentation of fruits, will attract a new rate of Sh22.50 per centilitre of pure alcohol from Sh243.43 per litre.
Beer, cider, perry, mead, opaque beer and mixtures of fermented beverages with non-alcoholic beverages and spirituous beverages of alcoholic strength not exceeding 6 per cent will have a new rate of Sh22.50 per centilitre of pure alcohol from Sh142.44 per litre.
The new rate for beer, cider, perry, mead, opaque beer and mixtures of fermented beverages with non-alcoholic beverages and spirituous beverages manufactured by licensed small independent brewers is Sh10 per centilitre of pure alcohol.
The products currently attract Sh142.44 duty per litre.
Spirits of undenatured ethyl alcohol, spirit liquors and other spirituous beverages of alcoholic strength exceeding 6 per cent will be Sh10 per centilitre of pure alcohol.
The excise duty for these drinks is currently Sh356.42 per litre.
Meanwhile, KRA said a 25 per cent or Sh 200 per kg, whichever is higher, has been imposed on imported self-adhesive plates, sheets, film, foil, tape, strip and other flat shapes of plastics.
The taxman said the duty will be applicable whether or not the rolls are tariff number 3919.90.90, 3920.10.90, 3920.43.90, 3920.62.90 and 3921.19.90.
KRA, however, said imported self-adhesive plates, sheets, film, foil, tape, strip and other flat shapes of plastics originating from East African Community Partner States that meet the East African Community Rules of origin have been exempted from the new duty.
On betting, the new law will impose a 15 per cent Excise Duty on any amount wagered or staked up from 12.5 per cent. This excludes horse racing.
The 15 per cent Excise Duty also applies to amount paid or charged to participate in a prize competition and amount paid or charged to buy lottery ticket, excluding charitable lotteries.
"Manufacturers of the excisable goods and suppliers of the excisable services are required to charge the new excise duty rates on the excisable goods and services and remit the tax collected to the commissioner, in the case of betting and gaming services, within 24 hours from closure of transaction of the day," KRA said.
"In the case of licensed manufacturers of alcoholic beverages, on or before the fifth day of the month following the month in which the tax was collected," the taxman added.
Other licensed persons are required to remit the tax collected on or before the 20th day of the month following the month in which the tax was collected.
