How To Submit Your Views On KRA Excise Tax Changes
The deadline for submission of views on the proposed 6.3% inflation adjustment is on Friday, September 16. The new adjustment is likely to take effect on Saturday, October 1.
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The Kenya Revenue Authority (KRA) has invited Kenyans to submit views on the new rates of excise duty and export duty, a move which is likely to affect basic household commodities and some products that are popular among Kenyans.
An excise or excise tax (sometimes called an excise duty) is a type of tax charged on goods produced within the country (as opposed to customs duties, charged on goods from outside the country). It is a tax on the production or sale of a good.
Export duties consist of general or specific taxes on goods or services that become payable when the goods leave the economic territory or when the services are delivered to non-residents; profits of export monopolies and taxes resulting from multiple exchange rates are excluded.
The deadline for submission of views on the proposed 6.3% inflation adjustment is on Friday, September 16. The new adjustment is likely to take effect on Saturday, October 1.
The taxman thus explained the need to engage the public on the price adjustments before it moves to either maintain, increase or decrease the prices of various commodities.
How To Submit
"In compliance with the Statutory Instruments Act, Kenya Revenue Authority invites interested members of the public and stakeholders to submit their views on the inflation adjustments.
"The submissions should be addressed to the Commissioner General, Kenya Revenue Authority, PO Box 48240-00100, Nairobi or emailed to stakeholder(dot)engagement@kra.go.ke to be received on or before Friday, 16th September 2022," read the statement in part.
Kenyans were also urged to visit the website for more information on the adjustment of the excise duty.
Some of the products likely to be affected by the adjustment include cigarettes, wine, toothpaste, motorcycles, imported sugar, imported SIM cards, imported white chocolate, beverages, and cigars. Others include packaged water, juice fruit, nicotine products and other products manufactured using tobacco, alcoholic and non-alcoholic beverages, petroleum products, cosmetics, rawhide and skins among others.
The changes will also see the exercise duty of various fuel products moderated and they include motor spirit, aviation spirit, jet fuel, illuminating kerosene, diesel oil, and gas oil among others.
"The specific rates will be adjusted using the average inflation rate for the financial year 2021/2022 of six decimal three per centum (6.3 per cent), as determined by the Kenya National Bureau of Statistics, and the adjusted specific rates will be effective from October 1, 2022," the taxman's statement read in part dated Thursday, September 1.
The proposed 6.3% inflation adjustment was formulated to protect the government as Kenya’s currency continues to lose value as the price of goods increases.
The application of the annual inflation tax is in line with the law that demands excise duty be revised upwards in tandem with the cost of living measure. This is a move that will force manufacturers and other traders to pass on the additional costs to consumers.
This will come days after the price of Super Petrol went up by Ksh20 to Ksh179.30 per litre, Diesel increased by Ksh25 to Ksh165 while Kerosene increased by Ksh20 to Ksh147.94 in Nairobi. Fuel inflation was the primary cause of overall consumer price increases in Kenya over the past year due to higher pump prices.
Fuel price update for between September 15, 2022 and October 14, 2022. /VIRALTEAKE
