@CapitalFMNews

Chocolate tax will control obesity – CS Rotich

3 months ago, 19 Sep 17:07

By: Margaret Njugunah

,

NAIROBI, Kenya, Sept 19 – If white chocolate, chocolate blocks, slabs or bars are your means of escape from the stresses of life, brace your self because you’re about to start paying more for your guilty pleasure.

But Treasury Cabinet Secretary Henry Rotich says the proposed Sh20 excise duty for every 1Kg of sugar confectionery will reduce your sweet tooth, hence save you from lifestyle diseases such diabetes and counter rising obesity levels.

“You’re complaining about this tax while the country is spending more on obesity. That was the rationale we used when we decided to control the problem through taxation while also increasing government’s revenue,” Rotich told the National Assembly Finance Committee.

Apart from chocolates, sweets, candied nuts, chewing gum and bubble gum will also be affected by the confectionary excise duty.

The sweet tooth tax is one of the tax proposals contained in a memo send by President Uhuru Kenyatta to the National assembly as part of raising revenue.

Rotich said failure to pass the tax proposals will adversely affect the revenues collected, “making it inconsistent with the approval fiscal framework and provisions of the Division of Revenue Act, 2018.”

A 50 G Snikers single chocolate bar costs about Sh120, while an 80G Cadbury chocolate bar costs Sh160. The country’s confectionery market has been growing, with 9 firms producing an estimated 55,4187 metric tonnes out of which 23,084 is exported.

Kenyatta has set his eyes on items that the everyday Kenyan uses to run a costly national and county government structure, fund his ambitious Big Four Agenda as well as repay mounting debt.

Other tax recommendations include an 8pc VAT on petroleum products, motor vehicle duty of between 20 and 30pc, and an increase in duty on mobile and internet data services from 10pc to 15pc.

There is also a proposal to increase the excise duty on mobile money transfer from 10pc to 20pc.

The Housing Development Fund tax to be paid by the employees has been revisited and increased to 1.5pc and employer at 1.5pc of the monthly basic salary with a penalty of 5 percent for employers who fails to submit the contributions


Read More


Category: business

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@CapitalFMNews

Chocolate tax will control obesity – CS Rotich

3 months ago, 19 Sep 17:07

By: Margaret Njugunah

,

NAIROBI, Kenya, Sept 19 – If white chocolate, chocolate blocks, slabs or bars are your means of escape from the stresses of life, brace your self because you’re about to start paying more for your guilty pleasure.

But Treasury Cabinet Secretary Henry Rotich says the proposed Sh20 excise duty for every 1Kg of sugar confectionery will reduce your sweet tooth, hence save you from lifestyle diseases such diabetes and counter rising obesity levels.

“You’re complaining about this tax while the country is spending more on obesity. That was the rationale we used when we decided to control the problem through taxation while also increasing government’s revenue,” Rotich told the National Assembly Finance Committee.

Apart from chocolates, sweets, candied nuts, chewing gum and bubble gum will also be affected by the confectionary excise duty.

The sweet tooth tax is one of the tax proposals contained in a memo send by President Uhuru Kenyatta to the National assembly as part of raising revenue.

Rotich said failure to pass the tax proposals will adversely affect the revenues collected, “making it inconsistent with the approval fiscal framework and provisions of the Division of Revenue Act, 2018.”

A 50 G Snikers single chocolate bar costs about Sh120, while an 80G Cadbury chocolate bar costs Sh160. The country’s confectionery market has been growing, with 9 firms producing an estimated 55,4187 metric tonnes out of which 23,084 is exported.

Kenyatta has set his eyes on items that the everyday Kenyan uses to run a costly national and county government structure, fund his ambitious Big Four Agenda as well as repay mounting debt.

Other tax recommendations include an 8pc VAT on petroleum products, motor vehicle duty of between 20 and 30pc, and an increase in duty on mobile and internet data services from 10pc to 15pc.

There is also a proposal to increase the excise duty on mobile money transfer from 10pc to 20pc.

The Housing Development Fund tax to be paid by the employees has been revisited and increased to 1.5pc and employer at 1.5pc of the monthly basic salary with a penalty of 5 percent for employers who fails to submit the contributions


Read More

Category: business

Suggested

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@BusinessDaily - By: Patrick Alushula
Marginalised counties demand Sh28.3bn from Treasury

Kenya’s poorest counties have teamed up to demand the release of Sh28.3 billion that the National Treasury has withheld over the years ...

Category: business corporate news
23 hours ago, 07:43
@BusinessDaily - By: Patrick Alushula
Lobby reads mischief in accountants transfers

ICPAK accuses govt of witch-hunt saying procurement and accounting officers have been denied access to their previous duties ...

Category: business news
1 day ago, 22:19
@DailyNation - By: Peter Changtoek
Summer flowers for small farmer

Thomas Sang grows flowers that he sells to a firm that exports them earning a tidy sum ...

Category: business news
1 day ago, 23:14
@TheStar - By: Abel Muhatia @muh ...
Kerosene and petrol prices slashed before Christmas

Poor households that largely depend on Kerosene for lighting and cooking will enjoy the fuel at a cheaper rate for the next one month following ERCs latest review.According to the review, the cost of ...

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1 day ago, 22:19
@DailyNation - By: Isaiah Esipisu
Only smart farming will overcome climate change: Experts

Scientists note that the use of technologies and innovations like solar irrigation, digital agriculture, climate-smart agriculture and climate-smart breeding, is the only way to tackle the negative ...

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1 day ago, 22:34
@TheStar - By: Andrea Bohnstedt
Financing through CSR

A few days ago, president Uhuru Kenyatta said that he would require banks to emulate KCB Group’s corporate social responsibility (CSR) programme and set aside funds for youth empowerment programmes. K ...

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