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Bottled water prices to increase as KRA set to implement new excise tax ▷ Kenya News

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– Kenyans will pay more to quench their thirst as KRA is set to implement new tax on non-alcoholic beverages

– The new proposed excise rate of KSh 5 replaced the old charge of KSh 3 per liter

– The taxman expects to raise KSh 3.6 billion in bid to reduce missed perennial revenue targets

The price of bottled water is set to rise by an average of KSh 7 per liter as the Kenya Revenue Authority (KRA) moves to implement new excise taxes on non-alcoholic beverages from Wednesday, November 13.

Member of the Water Bottlers Association of Kenya (WBAK) said they have no option but to pass on the additional costs to consumers.

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The price of one liter of water is expected to increase by KSh 7 per liter. Photo: Citizen TV.
Source: UGC

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The association’s chairman Henry Kabogo confirmed Kenyans will pay more to quench their thirst according to a report by Citizen TV on Friday, November 7.

“The water that people use on a daily basis is going to be un-affordable. This means that under the economic hardships, people may choose to turn their contained spend away to more crucial goods,” Kabogo said.

Bottled water prices to increase as KRA set to implement new excise tax

A file photo of Water Bottlers Association of Kenya chairman Henry Kabogo: Photo: Business Today.
Source: UGC

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The new excise taxes on non-alcholic drinks were first introduced in the Excise Duty Bill, 2015 to replace the customs and excise act, cap 472 but was not implemented after litigation challenges.

The new proposed excise rate of KSh 5 replaced the old charge of KSh 3 or an equivalent five/seven percent of total product’s cost.

KRA expects to raise KSh 3.6 billion in bid to reduce missed perennial revenue targets in the new tax plan.

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