The Kenya Revenue Authority (KRA) has announced updated excise duties on various imported products, following the enactment of the Tax (Amendment) Bill in late 2024. These changes are set to take effect on January 20, 2025, and will impact a range of goods.
Key Updates:
- Electric Transformers and Parts: Imported fully assembled electric transformers and their components will now incur an excise duty of 25% of their value.
- Printing Ink: A 15% excise duty will be applied to printing ink imports, excluding those from East African Community (EAC) partner states that comply with EAC Rules of Origin.
- Ceramic Sanitary Ware: Items such as sinks, wash basins, and bathtubs will face a 5% excise duty or Ksh50 per kilogram, whichever is higher.
- Glass Products: Float glass and polished glass sheets, not designed as mirrors, will be subject to a 35% duty of their customs value or Ksh200 per kilogram.
- Ceramic Tiles: Imported ceramic tiles, including paving and mosaic tiles, will attract a 5% excise duty of their customs value or Ksh200 per square meter.
- Coal Imports: A 2.5% excise duty will be levied on coal imports based on their customs value.
- Chemical Compounds: Imported saturated polyester, vinyl acetate polymers, and emulsion-styrene acrylic will each face a 20% excise duty.
- Printed Paper and Paperboard: These imports will have a 25% excise duty or Ksh150 per kilogram, with exceptions for goods from EAC partner states meeting the Rules of Origin.
- Plastic Products: A 25% excise duty or Ksh200 per kilogram, whichever is higher, will be imposed on certain plastic imports.
- Advertising Fees: Advertisements on the internet and social media, as well as those related to alcoholic beverages, betting, gaming, lotteries, and prize competitions, will now incur a 15% excise duty.
- Sugar Imports: The excise duty on imported sugar will increase from Ksh5 to Ksh7.50 per kilogram, excluding imports for pharmaceutical manufacturing or by licensed sugar refineries.
- Cigarettes:
- Filtered cigarettes will see an excise duty rise from Ksh4,067.03 to Ksh4,100 per mille.
- Non-filter cigarettes will experience an increase from Ksh2,926.41 to Ksh4,100 per mille.
- Nicotine Products:
- Products containing nicotine or substitutes intended for inhalation will be taxed at Ksh2,000 per kilogram, up from Ksh1,594.50.
- Liquid nicotine for electronic cigarettes will face an excise duty of Ksh100 per milliliter, increased from Ksh70.
- Sugar Confectionery: Items under tariff heading 17.04 will see an excise duty increase from Ksh42.91 to Ksh85.82 per kilogram.
- Alcoholic Beverages:
- Wines and fortified wines will have an excise duty rise from Ksh243.43 to Ksh300 per liter of pure alcohol.
- Beer, cider, and similar beverages with less than 6% alcohol content will see duty revised to Ksh22.50 per centiliter, up from Ksh142.44 per liter.
KRA has directed manufacturers and suppliers of these excisable goods and services to implement the new rates by January 20, 2025. These adjustments aim to enhance revenue collection and align taxation with current economic policies.
