beer prices in kenya

An excise tax is levied on the sale of a specific commodity or service. The excise taxes applied to beer and cigarettes, which constitute the primary products within this tax category, are currently exhibiting a downward trend. This decline is indicative of reduced consumption, despite an increase in revenue from other items falling within the same tax segment.

According to a report from the Kenya National Bureau of Statistics (KNBS), excise taxes on beer and cigarettes experienced a decline of 0.5 percent and 8.2 percent, respectively, in the last five years. In contrast, taxes generated from airtime and financial transactions more than doubled during the same period.

This pattern persists amid ongoing discussions about the potential exclusion of non-harmful products from the roster subject to excise duty. The imposition of excise duty was originally designed to deter the consumption of harmful products.

After an increase in taxes, the demand for beer and Cigarettes has markedly declined, influenced by factors like higher beer prices in kenya, stricter regulations limiting availability, and shifting societal attitudes toward alcohol consumption. This confluence of elements has resulted in a notable reduction in alcohol demand, with far-reaching implications for both the economy and society.

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Kenya is expected to see a 0.3% year-on-year decline in beer consumption from 467 Thousand Metric Tons in 2021 to 458 Thousand Metric Tons by 2026, ranking 46th globally in 2021. Meanwhile, Kenyan beer production is projected to rise by 1.4% annually, reaching 596,030 Metric Tons by 2026 and securing the 43rd global position in 2021.

Additionally,  the daily per-person cigarette consumption increased from 0.5 to 1.3 over the past two years, with 83% of male participants identifying as smokers compared to only 16% of females.

Governments levy direct and indirect taxes on individuals and businesses. While direct taxes, such as income tax, are paid directly by the taxpayer to the government, indirect taxes in Kenya are paid indirectly. The advantages of direct taxes include providing a reliable revenue source, facilitating income redistribution through their progressive nature, simplicity in administration, and promoting savings and investments.

The company produces a variety of popular beer brands, including Tusker, Pilsner, White Cap, and Senator, along with wines, whiskeys, brandy, and assorted spirits. The eabl beer price list is between 1,000 Ksh and 4,000 Ksh.

Mama Ngina Taxes, based in Nairobi, is a private tax firm providing a comprehensive range of services, including tax preparation, advice, and representation for individuals and businesses. Specializing in financial and estate planning, the mama ngina taxes aims to guide clients through Kenya’s intricate tax compliance landscape, helping them maximize deductions and minimize tax liability with personalized solutions.

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Excise taxes target specific goods and services like cigarettes, alcohol, gasoline, and gambling, aiming to decrease consumer demand by raising their prices. This strategy is employed to shape consumer behavior and discourage the purchase of these items by reducing overall demand.

A decrease in tax collection significantly hampers government revenue, leading to budget deficits and a reduced capacity to fund public services. This shortfall can result in diminished services, increased taxes for citizens, heightened government borrowing, elevated debt, and a constraint on resources for vital public programs such as infrastructure and social initiatives.

Recent government regulations are affecting the brewing and tobacco industries, necessitating companies to adapt by altering ingredients, increasing taxes, and implementing marketing restrictions. These adjustments will have broad implications, requiring both industries to adapt for competitiveness, with consequences felt by consumers, businesses, and government revenues.

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