The Kenya Revenue Authority (KRA) has announced new adjustments to excise duty rates affecting manufacturers, importers, and suppliers of excisable goods.
In a notice issued on Monday, December 23, KRA revealed an increase in the excise duty on imported sugar, raising the levy from Ksh5 per kilogram to Ksh7.5 per kilogram.
However, the adjustment excludes sugar imported by registered pharmaceutical manufacturers and raw sugar brought in for processing by licensed sugar refineries.
Additionally, KRA increased excise duty on products containing nicotine or nicotine substitutes intended for inhalation without combustion or oral use.
The new rate stands at Ksh2,000 per kilogram, up from Ksh1,594.50 per kilogram. This rate excludes nicotine products manufactured or imported for approved health purposes, subject to clearance by the Health Cabinet Secretary.
KRA also introduced a 25P per cent tax or Ksh200 per kilogram on imported adhesive plates, shoes, films, foil, tape, strips, and other flat plastic products. However, the levy excludes commodities originating from East African Community (EAC) Partner States, provided they meet the EAC rules of origin.
The Authority clarified that the adjustments stem from the recently enacted Tax Laws (Amendment) Act, signed into law by President William Ruto. The changes are set to take effect on December 27, 2024, aligning with the implementation of the new tax law.
“Manufacturers of excisable goods and suppliers of excisable services are required to apply the updated excise duty rates on the affected goods and services and remit them to the Commissioner,” read part of the KRA statement.
This announcement follows President Ruto’s signing of seven bills into law, including the tax bill, two weeks ago. The new measures are aimed at boosting revenue collection and aligning tax regulations with the evolving economic landscape.
