advertisement

Economy

Alcohol, cigarette set to cost more

Treasury secretary Henry Rotich. FILE PHOTO | NMG
Treasury secretary Henry Rotich. FILE PHOTO | NMG 

The Treasury has doubled the excise stamp fees for cigarettes, wines, and spirits to Sh2.80 per sticker, setting the stage for an increase in retail prices by similar margins as manufacturers of the products pass on the costs to consumers.

The tax has traditionally been charged at a flat rate of Sh1.50 for each retail unit (bottle, can or packet) — highlighting the huge cost impact for consumers.

The new rates took effect on Monday last week after Treasury secretary Henry Rotich used his discretionary powers to roll out the tariffs before the passing of the Finance Bill as required by law.

“The Cabinet secretary for the National Treasury orders that all provisions of the Bill relating to taxes or duties shall have effect as though the Bill were passed into law,” Mr Rotich said in a gazette notice.

advertisement