NAIROBI, Kenya, April 11 – Flour, alcohol, chocolates and cosmetics are among the items whose items are expected to be hit with higher taxes if the Finance Bill 2022 is passed by MPs.
Under the bill introduced by Gladys Wanga, Chair of the Finance and Planning Committee. wheat, maize and cassava flour will be subject to a 16% value added tax (VAT), or consumption tax.
In the proposed changes, the government is also seeking to increase the tax on bottled water, soda, beer and spirits by 10% effective January 1, 2023.
If passed by lawmakers, the government will get more out of betting, gambling and lotteries whose excise duty will triple from 7.5% to 20%.
This is part of the government’s efforts to raise an additional 50.4 billion shillings to fund the 3.3 trillion shilling budget.
When releasing the 2022/23 budget on Thursday, Treasury Secretary Ukur Yatani said the government would continue to review existing tax expenditures with petroleum product exemptions to increase tax revenue.
“Mr. President, in the bill I have also proposed to increase the specific rates of excise duty by 10% for a number of products in order to generate additional revenue for the government,” he said. -he declares.
Excise duties on alcohol, cigarettes, fruit juices, soft drinks, ice cream, cosmetics and beauty products have also been increased by 10%.
In the proposed changes, one unit of the imported motorcycle will be subject to an excise duty of 13,403.64 shillings from the current rate of 12,186 shillings.
Under the proposals, a liter of bottled water with an excise duty of Sh6.60 will rise from the current rate of Sh6.03.