Concerns as JOHN MBADI increases tax by 35% on some goods – LOOK! This guy may be worse than Prof. NJUGUNA NDUNG’U



Saturday December 7, 2024 - Treasury is in the firing line yet again for all the wrong reasons.

This is after Treasury Cabinet Secretary John Mbadi increased taxes for select products.

In his proposal, Mbadi wants to impose an excise duty of 35 per cent on imported key construction materials like ceramic sinks, toilets, tile, washbasins, baths, and urinals.

In the proposed amendments to the First Schedule to the Excise Duty Act, 2015, the Treasury proposes to impose excise duty, a move that has faced a backlash from stakeholders in the construction sector.

Experts warn that should the excise duty be imposed, the cost of construction will increase especially for new homeowners further impacting the economy which is currently in turmoil. Construction stakeholders are strongly opposed to the excise duty.

This proposal is part of the Tax Laws (Amendment) Bill 2024 which seeks to widen the tax base and increase Government revenue by imposing excise duties on various goods.

The proposals have sparked fierce resistance from construction firms who are now expressing their dissatisfaction with Parliament’s Finance Committee.

The Excise Duty Act, of 2015 was established to impose taxes on specific goods and services within Kenya. The act aims to regulate and control the consumption of certain products while generating revenue for the government.

The First Schedule lists items that are subject to excise duty, which includes a range of products from alcohol and tobacco to luxury goods like ceramics.

The imposition of excise duty on ceramic sinks and toilets will see importers shoulder higher costs due to the excise duty, which may lead them to pass these costs onto consumers thereby increasing the cost of construction.

The Kenyan DAILY POST

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