The price of beer, water and juice is set to rise on October 1, 2022 as the Kenya Revenue Authority (KRA) takes the step to actualise annual inflation tax adjustment on excise duty charged on the products.
The taxman yesterday indicated excise duty on the products will rise by 6.3 per cent effective next month.
“The specific rates will be adjusted using the average inflation rate for financial year 2021/2022 of six decimals three per centum (6.3 per cent), as determined by the Kenya National Bureau of Statistics, and the adjusted specific rates will be effective from the following month,” the KRA said.
The taxman remains open to the public to present views on the proposed adjustments by September 16 this year.
In addition to that, National Treasury and Planning Cabinet Secretary Ukur Yatani Kanacho said the higher excise, which is separate from the annual adjustment for inflation, is among new tax measures meant to help the government generate an additional over Sh50 billion in the 2022/2023 fiscal year.
“This has basically nothing to do with essential products. They are all luxury items that have nothing to do with the general population of this country,” said Yatani.
Previously, inflation adjustment has been a must for all excisable items attracting a specific duty. But in yesterday’s budget speech, Yatani presented a request to allow KRA Commissioner General room to pick out products to exempt from this adjustment with the prevailing economic conditions at heart.
The rise in the price of this commodity is projected at a time the country is at a standstill with the election mode prevailing as the nation awaits the Supreme Court judgment concerning the petition.
