Kenyans may soon have to dig deeper into their pockets to satisfy their sweet tooth, as proposals to introduce excise duty on imported sugar could lead to an increase in prices.
The recent budget estimates for the Financial Year 2023/2024 presented by National Treasury CS Prof.
Njuguna Ndung’u have left many disappointed, as hopes of a decrease in sugar prices have been dashed.
Currently, one kilogram of sugar is retailing at over Ksh. 200, and with the introduction of excise duty, these prices are expected to rise even further.
This news will undoubtedly sadden the majority of Kenyans who rely on sugar for their daily cup of tea or coffee, as well as those who enjoy indulging in sweet processed foods.
The aim behind introducing excise duty on imported sugar is to discourage its consumption.
In his proposal, CS Ndung’u suggested a rate of Ksh 5.0 per kilogram for this excise duty.
However, he also emphasized the need to exclude sugar imported or purchased by registered pharmaceutical manufacturers for use in the production of pharmaceutical products commonly used by Kenyans with diabetes.
Furthermore, CS Ndung’u addressed another issue related to tea.
He expressed concern that the current taxation on tea purchased from factories or tea auction centers was negatively impacting cash flows for tea exporters.
To address this problem and promote value addition and subsequent exportation of tea, he proposed removing VAT on such purchases. “The removal of VAT on tea purchased from factories or tea auction centers for value addition and subsequent export would greatly improve the entire tea value addition and export chains,” said CS Ndung’u.
These proposals have sparked mixed reactions among Kenyans.
While some argue that discouraging sugar consumption through higher prices is necessary for public health reasons, others worry about the impact it will have on their daily lives and budgets.
As these proposals make their way through Parliament, Kenyans will have to wait and see how they will ultimately affect their sugar consumption habits and the prices they pay for this essential commodity.
