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Government raises tax on cigarettes, alcohol

11 June 2015, 18:20 William Korir

Nairobi - The government has raised taxation on cigarettes, alcohol and soft beverages in the budget 2015.

Treasury CS Henry Rotich said Thursday during his budget reading speech that tax on the three would be increased to help raise revenue.

He also added that tax would be increased on sugar imports to cushion local sugar companies from cheap imports.

Rotich also added a road fuel levy tax which will likely see fuel prices rise.

Landlords will also have to pay tax, with first being forced to declare their tax returns and have been given up to a year to do so, which will in the end likely increase rent for Kenyans.

Rotich also failed to mention just how much the government would increase its efforts to help the ailing tourism sector, only allocating KES 5.2 billion to the important sector, a move that will raise eyebrows amongst players.

However, there was also some good news with the controversial 5 percent Capital Gains Tax on sale of shares dropped in favour of 0.3 percent transaction tax on value.

The government will also allocate KES 223.9 billion to the security sector during the 2015-2016 financial year, a KES 27 billion increase from the previous allocation.

Cabinet Secretary for Treasury Henry Rotich while presenting the proposals to the National Assembly on Thursday said KES 112 billion will be channeled to the Ministry of Defence and the National Intelligence Service.

The Interior Ministry will be allocated a massive KES 102.4 billion in a bid build on the security measures already in place which include enhancing mobility and modernizing the service.

This is to deal with the threat of insecurity as well as the Al Shabaab terror group that has caused mayhem in the country.

Also raised was the money for the Laptop project to ease its roll-out.

More to come

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