The Kenya Revenue Authority (KRA) has announced significant adjustments to excise duty rates on various goods and services, following the enactment of the Tax Laws (Amendment) Act, 2024.
The amendment that was signed into law by President William Ruto adjusted the existing excise duties on various products to boost revenue collection.
According to a noitice by KRA the new tax measures will take effect on December 27, 2024.
Under the revised tax regime, several essential and luxury goods will face higher excise duty rates, with notable products including:
Imported Sugar The excise duty on imported sugar will increase from KSh 5 per kilogram to KSh 7.50 per kilogram. Cigarettes Both filtered and unfiltered cigarettes will now attract an excise duty of KSh 4,100 per mille, up from KSh 4,067.03 and KSh 2,926.41 per mille, respectively. Nicotine products Items containing nicotine or substitutes, excluding approved medicinal products, will face a higher tax rate of KSh 2,000 per kilogram, up from KSh 1,594.50.
Imported Sugar: The excise duty on imported sugar will increase from KSh 5 per kilogram to KSh 7.50 per kilogram. Cigarettes : Both filtered and unfiltered cigarettes will now attract an excise duty of KSh 4,100 per mille, up from KSh 4,067.03 and KSh 2,926.41 per mille, respectively.
Nicotine products Items containing nicotine or substitutes, excluding approved medicinal products, will face a higher tax rate of KSh 2,000 per kilogram, up from KSh 1,594.50.
Higher taxes on betting and gaming: The betting and gaming industry will see an increase in excise duty rates based on the new tax laws. The amount wagered or staked on betting, gaming, prize competitions, and lottery tickets will now attract a 15% excise duty, up from the previous rate of 12.5%.
(Tuko)
