Beer consumers are set for a tax reprieve as the government moves to lower the excise levied on the product while slapping higher sin taxes on spirits, wine and cigarettes.
Majority of the spirits sold in the market have an ABV of between 37 percent and 45 percent. At the lower ABV range, the excise duty per litre will jump to Sh592 per litre, while for those with an ABV of 45 percent, the excise will jump to Sh720 per litre.
The spirits are commonly sold in 750ml bottles, which will now attract excise of between Sh444 and Sh540 per bottle based on the ABV.
Beer consumers are set for a tax reprieve as the government moves to lower the excise levied on the product while slapping higher sin taxes on spirits, wine and cigarettes.
The Finance Bill 2024 proposes a new method of calculating excise on beer, wine and spirits based on pure alcohol content—also known as alcohol by volume (ABV)— unlike the present method which has a flat excise for each of the three types of alcoholic drinks.
