Kenya Proposes Higher Tobacco Stamp Duties

Kenya Proposes Higher Tobacco Stamp Duties

The Kenya Revenue Authority (KRA) wants to increase the stamp duty on combustible cigarettes, electronic cigarettes and other nicotine-delivery devices to KES5 ($0.04) from KES2.8, reports The Star.

The agency has invited the public to give its views on the proposal by Feb. 3.

The move to appears to be in response to President William Ruto’s directive to the KRA to double its revenue collection from KES2.1 trillion to more than KES4 trillion.

Last November, the president said increasing revenue collection would help the country ease its debt burden.

“I need help with our debt situation. I have agreed with KRA that as a country, we must move from KES2.1 trillion to between KES4 [trillion to KES]5 trillion,” he said.

According to Ruto, countries in the middle-income category typically raise 20 percent to 25 percent of their GDP from taxes. By comparison, Kenya raises only 14 percent of its GDP in that manner.

Source: Tobacco Reporter