State to impose beverage taxes based on alcohol content
Additionally, it has been suggested that the excise charge on alcoholic beverages be changed from 24 hours to 5 working days after being removed from the stock room."
The excise duty on wines and beers has been recommended to be changed from particular rates per litre to a rate of Sh22.50 percent per litre of pure alcohol by Treasury Cabinet Secretary Njuguna Ndung'u.
He suggested that the excise duty on spirits be changed from fixed rates per liter to 16 percent for each liter of pure alcohol.
"We want to start taxing alcohol beverages on the basis of alcohol content," he stated.
Consumption behaviour of these alcoholic beverages," he said.
"This new structure of taxation based on alcoholic content does not distort the markets and does not affect the investment decision and is expected to encourage the responsible consumption behaviour of these alcoholic beverages," he said. Additionally, it has been suggested that the excise charge on alcoholic beverages be changed from 24 hours to 5 working days after being removed from the stock room."
The 24-hour time frame has posed administrative and cash flow challenges to the taxpayers," he stated.Njuguna also suggested raising the excise duty rates from Sh1,594.50 to Sh2,000 per kilogramme for nicotine or nicotine alternatives.In addition, he suggested imposing an excise duty of Sh4,100 per mile on cigarettes and nicotine containing products, both with and without filters."This will reduce the incentive for misdeclaration and illicit trade and to address their adverse effects on human beings," he stated.
Additionally, he suggested raising the excise tax from Sh70 to Sh100 on liquid nicotine for electronic cigarettes.
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