New Bill to push up the cost of living for Kenyans

Buyers of vehicles that are more than three years old from the date of registration will pay Sh50,000 more in excise duty if a proposed law sees the light of day.

According to an excise duty Bill 2015 tabled in Parliament Thursday, buyers of vehicles that are more than that age from the date of registration, will pay Sh200,000 compared to Sh150,000 for those that have not attained three years.

Motorcyclists will pay Sh10,000 per unit excluding motorcycle ambulances that have become popular particularly in the rural areas.

Plastic shopping bags will attract Sh120 per kilogramme if the Bill is passed by Parliament in its current form. Products such as gasoline, spirits, fruit juices and beers are also set to go up after the excise duty on them was raised during the Budget presented by National Treasury Cabinet Secretary Henry Rotich.

According to a special issue of the gazette notice number 79, motor vehicles, gasoline, jet fuel, aviation spirit, white spirit and other light oils are set to attract new rates of taxes as government seeks to fund the Sh2.1 trillion budget.

Gasoline (regular) will be charged excise duty of Sh19,505 for every 10,001 litres while premium will attract Sh19,895 for the same quantity.

AVIATION AND JET FUEL

Aviation and jet fuel will also attract Sh19,895 per every 10,001 litres and while spirit at Sh8,500 and other light oils will attract similar tax rates.

Fruit juices whether containing sugar or sweeteners will attract Sh10 per litre while food supplements will be charged excise duty at 10 per cent.

Other products such as water and other non-alcoholic beverages that do not include fruit and vegetable juices, will also be charged Sh10 per litre.

Beer, cider, perry, mead, opaque beer and mixtures of fermented beverages and spirit-based beverages of alcoholic strength not exceeding 10 per cent will be charged Sh100 per litre. Powdered beer will also be charged at Sh100 per kilogramme.

Wines including fortified and other alcoholic beverages obtained by fermentation of fruits will attract Sh150 per litre while spirits of undenatured ethyl alcohol, liquors and other spirit-based beverages of alcoholic strength exceeding 10 per cent will be charged Sh175 per litre.

Kerosene type jet fuels will attract Sh5,755 per 10,001 litres and gas oil Sh10,305. Various products containing tobacco and tobacco substitutes like cigars, cheroots and cigarillos will attract Sh10,000 per kilogramme while electronic cigarettes will be charged Sh3,000 per unit and cartridge for use in electronic cigarettes will attract Sh2,000 per unit.