Manufacturers say two new tax measures contained in the Finance Act 2023 have sent shockwaves into the horticulture and tea industries after the new levy pushed up prices for imported Kraft paper, a critical raw material in the production of cartons.
The introduction of the 10 percent export and investment promotion levy and the decision by Kenya to raise duty on imported paper and paper products has raised effective taxes on uncoated Kraft paper to 74 percent from 13 percent.
