Kenya: Beer, Juice and Makeup to Cost More as New Taxes Kick in

Nairobi — Kenyans will now dig deeper into their pockets to buy alcohol, cigarettes, juices and cosmetics as the new taxes in the Finance Act 2022 kick in starting July 1.

The Act, which President Uhuru Kenyatta signed into law last week, has raised excise duty on a number of goods and services that the government considers harmful, luxurious or morally suspect by at least 10 per cent.

The increased taxation measures are expected to assist the government raise more revenue to fund this financial year’s Sh3.3 trillion budget.

Consumers of spirits like whisky, gin and rum are the hardest hit with duty per litre climbing 20.31 per cent to Sh335.30 after the House rejected a recommendation by Finance and Planning Committee to spare alcohol from higher taxes this fiscal year.

The committee sought to spare alcoholic drinks from the price raise on grounds that it will lead to increased consumption of illicit drinks.

Duty on beer has also gone up by 9.97 per cent to Sh134 per litre from Sh121.85, wines by 9.99 per cent to Sh229 per litre, while fruit and vegetable juices will increase 9.29 per cent to Sh13.30 from Sh12.17.

Cigarettes with filters will be charged a duty of Sh3,825.99 per mille from Sh3,447.61 per mille while cigarettes without filters will be charged Sh2,752.97 per mille from Sh 2,502.74 per mille.

Imported chocolate, chocolate in blocs, slabs or bars of tariff will also cost more as duty has been increased to Sh242.29 per kg from Sh220.31 per kg

The cost of imported jewellery such as necklaces, earrings, bracelets and rings is also set to go up on a 15 per cent duty compared with 10 per cent previously.

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