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KRA Increases Tax For Beer, Spirits Days After Uhuru Reopened Bar

Beer [Courtesy]

Beer takers will have to pay an extra Ksh6 for a litre of beer and products with alcohol content not exceeding six percent while spirit takers will pay Ksh12.50 more for a litre.

This follows a move by the Kenya Revenue Authority (KRA to increase the excise duty on 31 products by 4.94 percent, in line with the inflation rates to the financial year ending June 31.

Among other products whose prices rose effective October 1, two days after President Uhuru Kenyatta reopened bars, include fuel, bottled water and juice.

“The Commissioner-General adjusts for inflation the specific rates of duty set out in the Schedule hereto in accordance with the formula specified in Part 1 of the First Schedule to the Act with effect from the 1st October, 2020,” KRA said in a gazette notice on Friday.

For a litre of wine, KRA will collect Ksh265.50, Ksh198.34 per litre of wine and Ksh116.08 per litre of beer. The price of a stick of cigarette will go up by Ksh0.16 more.

On Friday, the Energy and Petroleum Regulatory Authority (EPRA) announced an increase in fuel prices across the country over the same.

Read: Fuel Prices Rise As KRA Effects 4.9 Per Cent Excise Duty

As a result, the pump price for Super Petrol in Nairobi increased by Ksh1.12 while that of Diesel and Kerosene increases by Ksh0.58 per litre respectively.

The recalculated maximum wholesale and retail pump prices will be in force from Saturday, October 30 to October 14.

“Pursuant to Legal Notice No. 194 of 2020, the Kenya Revenue Authority (KRA) has adjusted upwards the Excise Duty on Super Petrol, Diesel and Kerosene after taking into account the average inflation rate of 4.94% for the financial year 2019/2020, ” EPRA said in a statement on Friday.

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Written by Francis Muli

Follow me on Twitter @francismuli_. Email

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