Kenyan Alcohol, Tobacco Manufacturers Oppose Higher Excise Tax

(Bloomberg) -- The Alcoholic Beverages Association of Kenya and tobacco manufacturers including British American Tobacco Kenya Ltd. “strongly oppose” a decision by lawmakers to raise excise tax rate to 21% from the 15.85% proposed by National Treasury in the Finance Bill.

“For heavily taxed industries such as ours, where up to 60% of revenues goes to taxation, such increases only further incentivise tax evasion, smuggling and counterfeiting,” the manufacturers said Saturday in a joint emailed statement.

Kenyan President Uhuru Kenyatta has until Sept. 30 to assent to the Finance Bill or reject it.

To contact the reporter on this story: Bella Genga in Nairobi at bgenga2@bloomberg.net

To contact the editors responsible for this story: David Malingha at dmalingha@bloomberg.net, Eric Ombok, Jacqueline Mackenzie

©2019 Bloomberg L.P.