By Jemimah Wambui
The government has enforced new taxes on alcohol, juices and beauty products by at least 10% that will take effect from today.
This comes after President Uhuru Kenyatta signed The Finance Act 2022 last week that will affect a number of goods and services that the government considers luxurious, harmful or morally suspect.
“These taxes are going to make the cost of living high and reduce disposable income for households. Life is going to be a bit difficult,” a senior manager for tax services at consultancy and audit firm KPMG said.
The cosmetics and beauty products industry and imported jewelry will experience a rise in duty on its products from 10% to 15%.
Spirits like whisky have been highly taxed to 20.31% bringing the cost to Sh335.30 per liter.
Duty on beer has gone up by 9.97% to Sh134 per liter, wines by 9.99% to Sh229 per liter, while fruit and vegetable juices will have a 9.29% increase to Sh13.30.
A recommendation of the Budget committee that sought to spare alcoholic products from higher taxes was dismissed by the MPs, reason being that it would increase its consumption at this time when the cost of living is high for many households.
A 10% excise duty will also be put on importation of mobile phones and Sh50 for every imported SIM card. This will be a key target in raising money for revenue.