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Anti-Tobacco Crusaders Hail Passing Of Cigarette Tax

Anti-Tobacco crusaders have hailed the assenting of the Finance Act 2022 into law by President Uhuru Kenyatta.

The law which was assented by President Uhuru Kenyatta last month will see the prices of tobacco products and electronic cigarettes go up.

The new prices will see the prices of cigarettes with filters go up by at least Ksh. 400 from the current Ksh. 3,477 per mille to Ksh. 3,825 per mille.

Cigarettes without filters will move from the current price of Ksh. 3,477 per mille to Ksh. 3,825 per mille.

Philip Musamia of International Institute for Legislative Affairs says that the excise duty on electronic cigarette products such as Lyft will go up by 40 percent.

“This is definitely a plus for us because the advocacy behind tobacco products should ensure that prices increase every year,” said Musamia.

“It is a positive that the treasury has taken note on our proposals and advocacy and increase the prices on these products,” he said

The WHO Framework Convention on Tobacco Control however proposes that taxes on these products go up to 70 percent.

The Finance Act 2022 also demands that multinational companies like BAT Holdings submit their reports on their activities in other countries.

“This clause will help us get a better understanding of the revenue made these firms. It will also help us monitor the activities of these companies in other countries and compare them with ours,” said Musamia.

On the lower side, Musamia says that the act has exempted duty on machinery used to set up plant for the manufacturing of e-cigarettes.

“This is quite dangerous considering that the products set to be manufactured in these factories are quite harmful to our health,” he said.

Last minute changes on the excise duties proposed on cigarettes and electronic cigarettes by parliament last year caused an uproar from the stakeholders.