Alcohol consumers to pay more as import tax takes effect
The prices of your popular alcohol imported into the East Africa region are set to rise substantially after a newly raised tax charge took effect on Friday. This follows the introduction of the Common External Tariff by the East African Community (EAC) partner states for imports entering the bloc.
The 35 per cent levy will apply for imported finished products from non-member states as part of a strategy to stimulate local production and industrialisation. This means that import shipments of the commodities entering Burundi, Kenya, Rwanda, South Sudan, Uganda, Tanzania and DR Congo will now cost more.
Among them these commodities are alcohol, meat, cereals, cotton and textiles.
The Kenya Revenue Authority (KRA) has notified importers of the changes and urged them to factor them into their tax transactions.
“Kenya Revenue Authority would like to draw the attention of taxpayers and the general public to recent changes in the Harmonised Commodity Description and Coding System (HS) and the East African Community Common External Tariff commissioner for customs and border control, Lilian Nyawanda said in a circular.
The new levy is higher than the 30 or 33 per cent tariff that was earlier proposed by partner states. The decision finally resolves the implementation of the EAC Common External Tariff, which commenced in 2005 after the EAC Customs Union Protocol came into force.