Treasury secretary Henry Rotich in the Budget for 2017- 2018 gave the low-end of market a price relief with a significant cut in excise tax that will see the price of non-filter stick fall by 70 cents a stick.
An anti-tobacco lobby has faulted the Treasury’s decision to award smokers of filterless cigarettes a price cut through lower tax. They have petitioned Parliament to reject the proposal by upholding the current flat rate for all tobacco products.
Treasury secretary Henry Rotich in the Budget for 2017- 2018 gave the low-end of market a price relief with a significant cut in excise tax that will see the price of non-filter stick fall by 70 cents a stick.
Mr Rotich split the tax structure for cigarettes, maintaining Sh2.5 per stick for premium type and introducing a rate of Sh1.8 for the rest. Previously they attracted a uniform tax of Sh2.5.
This means economy cigarette brands such as Rooster and Rocket will cost less compared to premium brands like Dunhill and Embassy and mid-priced brands like Sportsman, Sweet Menthol, Super Match and Safari.
On Thursday the International Institute for Legislative Affairs chief executive Emma Wanyonyi said the move is “retrogressive” and defeats “any intended public health goals.”
“The cigarette types targeted for the reduction in tax rate are mostly consumed by the poor and low income earners. The move is likely to lead to greater tobacco use by these groups, leading them to bear a disproportionate share of the health and economic burden,” said Ms Wanyonyi.
She said by treating some products or a particular company more favourable than others is against the principles of Article 5.3 of the WHO Framework Convention on Tobacco Control.
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