NAIROBI, Kenya, April 5 – Treasury Cabinet Secretary Ukur Yatani has proposed an introduction of a 15 percent excise duty on alcohol, gaming, and gambling advertisements as the Government seeks a pie of the lucrative businesses.
Yatani noted that the adjustment is part of amendments under the Excise Duty Act that are set to generate an additional Shs 50.4 billion to the exchequer for the FY 2022/23 budget.
The projected total revenue collection for the next financial year is projected at Sh2.4 trillion equivalent to 17. 5 percent of GDP.
It is also meant to discourage the promotion of addictive products and activities which has resulted in a variety of harmful repercussions, especially to the youth.
“Gambling, gaming, and alcohol addiction have become prevalent in our society. These habits are extremely addictive and can result in a variety of harmful repercussions, especially for the youth. Advertisements for alcoholic beverages, betting, and gaming contributes greatly to the promotion of these habits. To discourage the promotion of these products and activities,” he said.
Similarly, Yatani proposed changing the taxation regime for liquid nicotine from the current shillings per unit to an excise duty of Sh70 per milliliter.
If the proposals will be passed by the August house, the e-cigarettes, also known as vaporizers or vapes will cost more so as to ensure they are not easily available.
He stated that the introduction of new products beyond e-cigarettes has led to addictions which are negatively affecting the health of citizens.
“The design of these products and their taxation regime makes them easily accessible to users including to school children and the youth, thus leading to nicotine addiction and consequently smoking and use of other drugs,” said Yatani.
The CS treasury noted that the design of liquid nicotine has made it easily accessible to school-going children and the youth thus leading to addiction.
“In order to prevent these habits and make the liquid nicotine used in these devices less accessible to users including to school children and the youth, I propose to change the taxation regime,” Yatani stated.
