The Kenya Revenue Authority (KRA) has implemented new excise duties as per the Tax Laws (Amendment) Act, 2024, effective December 27, 2024.
These changes introduce taxes on various goods and services, impacting both consumers and businesses.
A 15% excise duty now applies to online advertisements and services related to alcoholic beverages, betting, gaming, lotteries, and prize competitions.
This means that companies promoting such products or services online will face higher advertising costs, which may be passed on to consumers.
Imported fully assembled electric transformers and their parts are subject to a 25% excise duty.
This increase could affect the energy sector by raising the costs of importing essential equipment, potentially influencing electricity infrastructure projects and, ultimately, consumer electricity prices.
Imported printing ink, excluding those from East African Community (EAC) partner states that meet the EAC Rules of Origin, now faces a 15% excise duty.
This change may impact the printing and publishing industries by increasing production costs, which could lead to higher prices for printed materials.
Ceramic sanitary fixtures such as sinks, wash basins, baths, and similar items under tariff heading 6910 are now subject to a 5% excise duty on the customs value or Kshs. 50 per kilogram, whichever is higher.
This adjustment may lead to increased costs for construction and renovation projects involving these imported fixtures.
Imported float glass and surface ground or polished glass in sheets under tariff 7007 now attract a 35% excise duty on the customs value or Kshs. 200 per kilogram, whichever is higher.
This major increase could affect the construction and automotive industries, where such materials are commonly used.
Ceramic tiles under tariff 6907, including flags, paving, hearth or wall tiles, and unglazed ceramic mosaic cubes, now have a 5% excise duty on the customs value or Kshs. 200 per square meter, whichever is higher.
This change may influence the pricing of imported tiles in the construction sector. Imported coal is now subject to a 2.5% excise duty on the customs value.
This could impact industries relying on coal for energy, potentially leading to increased operational costs.
Various imported polymers, including saturated polyester (tariff 3907.99.00), polymers of vinyl acetate/vinyl esters (tariff 3905.21.00), and emulsion-styrene acrylic (tariff 3903.90.00), now face a 20% excise duty.
These materials are essential in manufacturing plastics, paints, and adhesives, and the increased duties may raise production costs in these industries.
Printed paper or paperboard under tariff headings 4811.41.90 or 4811.49.00, excluding those from EAC partner states meeting the EAC Rules of Origin, now attract a 25% excise duty or Kshs. 150 per kilogram, whichever is higher.
This change could affect the cost of packaging materials and printed products.
Additionally, articles of plastic under tariff headings 3923.30.00 and 3923.90.90 now have a 10% excise duty.
These items include various plastic products, and the new duty may influence their market prices.
Manufacturers and importers of these excisable goods, as well as suppliers of the specified services, are required to apply for the appropriate licenses and certificates from KRA.
They must also charge the excise duty from December 27, 2024, and remit the collected tax to the Commissioner on or before the 20th day of the following month.
The first return and payment for these duties are due by January 20, 2025.
These excise duty adjustments reflect the government’s efforts to increase revenue and regulate the consumption of certain goods and services.
Businesses and consumers should stay informed about these changes to understand their financial implications and ensure compliance with the new tax requirements.
Leave feedback about this