Health groups push for more tax on tobacco products
A group of Civil Society Organisations (CSOs) drawn from policy and health sectors have punched holes in the proposed Finance Bill especially on the taxation of tobacco and its products.
During a media sensitisation engagement, the groups raised concerns over the small percentage of tax on tobacco and its products, particularly the new generation smokeless tobacco merchandise.
Led by the National Taxpayers Association (NTA), the organisations singled out shisha, vapes, nicotine pouches and liquid refills, which have been banned in Asia, USA, Middle East and Europe. They wondered why in Kenya, such harmful products were being given priority even in the national budget. “Why is the excise duty on basic commodities such as bread almost doubled, when on these harmful products, it increased by a negligible percentage?” NTA and the International Institute of Legislative Affairs (ILA) wondered.
The organisation cited that the foreign industry players are behind these products in Kenya as some governments where they are being manufactured are aware of the danger they pose to public health. “And due to this, we are calling for a total ban,” John Thomi, a project officer with the NTA stated.
Subsequently, the CSOs have made four proposals to the current taxation that seek to increase excise levies on the products to deter sale, and by larger extent, the consumption. “The fight against the use of tobacco in Kenya has been a long, difficult one, with the enactment of strong tobacco taxation structures that have fallen within months due to corruption.
Existing policies
“We are therefore of the opinion that the government needs to work towards tightening the existing anti-tobacco policies,” said Thomi.
Reflecting on the Tobacco Tax Advocacy Project findings in Kenya, NTA and ILA made some key proposals in the 2024 finance bill to curb the proliferation of these products.
The first proposal according to the groups is to increase tax on cigarettes with filters such as sportsman, Dunhill from the current charge of sh4, 067.03 per mille to sh4100, causing the cigarette stick to rise by a cent.
The second one is increment on the cigarettes without filters currently rating at Sh2,926 per mille to sh4, 100, showing an increase of 1.2 cents per stick.
The other proposal was an increment to sh2000 per kilogram from the current charge of 1594.50 per kilogram on products containing nicotine or nicotine substitutes intended for inhaling and oral use, non-combustible tobacco products, excluding medicinal products approved by the cabinet secretary.
