KRA Announces Excise Duty Changes for Various Goods

The Kenya Revenue Authority (KRA) has issued a notice to manufacturers, importers and suppliers of excisable goods informing them about the adjustment of the excise duty.

The Authority, through a notice issued on Monday, December 23, announced the increase in excise duty of imported sugar from Ksh5 per kilogram to Ksh7.5 per kilogram.

However, the new rate excludes sugar imported by a registered pharmaceutical manufacturer and raw sugar imported for processing by a licensed sugar refinery.

KRA also announced the increase in the excise duty on products containing nicotine or nicotine substitutes intended for inhalation without combustion or oral application.

According to the notice, the Authority increased the excise duty on such commodities from Ksh1594.50 per kilogram to Ksh2000 per kilogram.

However, the excise duty on nicotine products excludes those manufactured or imported for health purposes, provided they are approved by the Health Cabinet Secretary.

Furthermore, KRA announced the introduction of a 25 per cent tax, or Ksh200 per kg, on imported adhesive plates, shoes, films, foil, tape, strips, and other flat shapes of plastics.

This excludes such commodities imported from East African Community (EAC) Partner States, but they must first meet the EAC rules of origin.

While making the announcement, the revenue authority revealed that the adjustments in the excise duty charged on the said goods were a result of the implementation of the Tax Laws (Amendment) Act, which was signed into law by President William Ruto.

According to KRA, the new charges will be effective from December 27 this year, when the Tax Laws (Amendment) Act will come into force.

“Manufacturers of excisable goods and suppliers of excisable services are required to apply excise duty rates on the excisable goods and services and remit them to the Commissioner,” read part of the statement by KRA.

The announcement comes two weeks after President Ruto signed seven bills into law including the tax bill, paving the way for the implementation of the levies.