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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