Kenya: Flour, Alcohol, Chocolates, Beauty Products to Cost More As Govt Revises Taxes

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Nairobi — Flour, alcohol, chocolates, and beauty products are among the items whose items are set to be slapped by higher taxes should the Finance Bill 2022 be passed by Members of Parliament.

Under the bill which was tabled by Gladys Wanga, the chairperson of the Finance and Planning Committee. wheat, maize, and cassava flour will attract a 16 percent value-added tax (VAT), or the consumption tax.

In the proposed changes, the Government also seeks to increase by 10 percent levy on bottled water, soda, beer, and spirits effective 1st Jan 2023.

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If passed by lawmakers, the Government will gain more from betting, gaming, and lottery whose excise duty will triple from 7.5 percent to 20 percent.

These are part of efforts by the Government to raise an additional Sh50.4 billion to finance the Sh3.3 trillion budget.

While issuing the 2022/23 budget on Thursday, Treasury CS Ukur Yatani said that the government will continue to review the existing tax expenditure with the exemptions of petroleum products in order to boost the tax revenues.

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“Mr Speaker, in the Bill, I have also proposed to increase the specific rates of excise duty for a number of products by 10 percent to generate additional revenue for the Government,” he said.

The excise duty on alcohol, cigarettes, fruit juices, soft drinks, ice cream, cosmetics, and beauty products was also increased by 10 percent.

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In the proposed changes, a unit of the imported motorcycle will be slapped with an excise duty of Sh13,403.64 compared to the current rate of Sh12,186.

Under the proposals, a liter of bottled water with an excise duty of Sh6.60 will go up from the current rate of Sh6.03.

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