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Prices Of 31 Goods To Increase Over Inflation Tax

Bottled water
The price of bottled water is set to go up [PHOTO/ COURTESY]

Prepare to pay more for 31 goods as from October 1, 2021, the Kenya Revenue Authority (KRA) has announced.

The goods, among them beer, fuel, bottled water and juice, will increase by at least 4.97 percent even as the taxman moves to effect the annual inflation tax in line with average annual inflation.

For instance, for every litre of beer, Kenyans will pay Ksh5.77 more and Ksh13.20 more for a litre of spirits.

The cost of fuel is also set to shoot by Ksh1.09 for litre of petrol, pushing excise duty to Ksh23.04, while diesel and kerosene will increase by Ksh0.566 per litre each.

The price of one stick of cigarette will increase by Ksh0.16 pushing the excisable duty to Ksh3.47 while the duty on bottled water will rise from Ksh3.31 to Ksh3.47 per litre.

Read: Kenya Power Faces Auction By KRA Over Unpaid Taxes

The excise tax on motorcycles (motorcycle ambulances and locally assembled bikes are exempted) will go up from Ksh11,608 to Ksh12,185.

“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 October 1, 2021,” the KRA said in a notice on Tuesday, August 10, 2021.

The rise in fuel prices is going to automatically push the prices up for other commodities due to an increase in manufacturing, processing and transport costs.

However, KRA will have to get approval from Parliament before effecting the change.

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Written by Francis Muli

Follow me on Twitter @francismuli_. Email francis@kahawatungu.com

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