Home » Business » KRA Announces 6.3PC Inflation Adjustment on Excise Tax

KRA Announces 6.3PC Inflation Adjustment on Excise Tax

by Zablon Ondari
2 mins read

The Kenya Revenue Authority (KRA) has announced an annual inflation adjustment on the excise tax, which is likely to affect some products commonly used by Kenyans.

It said in a statement that the deadline for submission of views on the proposed 6.3 per cent inflation adjustment was Friday, 16th September. The new adjustment is likely to take effect on Saturday, 1st October.

“The commissioner-general will adjust the specific rates of taxes applicable to excisable goods, which are charged excise duty at a specific rate per unit under the Excise Duty Act, 2015, and other goods subject to fees or levies at a specific rate under the Miscellaneous Fees and Levies Act, 2016,” read part of the taxman’s statement.

The products likely to be affected by the adjustment include cigarettes, wine, toothpaste, motorcycles, imported sugar, imported SIM cards, imported white chocolate, beverages, and cigars.

Others are packaged water, juice fruit, nicotine products and other products manufactured using tobacco, alcoholic and non-alcoholic beverages, petroleum products, cosmetics, rawhide and skins.

The specific rates will be adjusted using the average inflation rate for the financial year 2021/2022 of 6.3 per cent, as determined by the Kenya National Bureau of Statistics.

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