Mr Rotich spilt the tax structure for cigarettes keeping it at Sh2.5 per stick for cigarettes with filters and introducing a new rate of Sh1.8 for those without.
This means economy cigarette brands such as Rooster and Rocket will cost less compared to premium brands.
Mr Rotich said the policy is aimed at spurring growth in sale of cheaper cigarette brands whose demand had gone down, as a result of high taxation.
Treasury secretary Henry Rotich Thursday gave low-end of market cigarette smokers a price relief with significant cut in excise tax that will see the price of non-filter stick fall by 70 cents.
Mr Rotich spilt the tax structure for cigarettes keeping it at Sh2.5 per stick for cigarettes with filters and introducing a new rate of Sh1.8 for those without.
The two types of cigarettes have been attracting a uniform tax of Sh2.5 per stick.
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.
“…There has been industry concerns on current taxation of cigarette in our country. The current single-tax structure of Sh2,500 per mille of cigarette has been inequitable and has adversely affected demand for locally produced low-value cigarette,” said Mr Rotich.
“To cushion the local cigarette manufacturers from the adverse financial effects due to loss in market, I have proposed a two-tier tax structure of Sh2,500 per mille for cigarette with filters and Sh1,800 per mille for plain cigarette.”
Mr Rotich said the policy is aimed at spurring growth in sale of cheaper cigarette brands whose demand had gone down, as a result of high taxation.
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