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~ GI UKAS
~1.~ SGS MA~~~~NT
ISO 9001-2000 CERTIFIED
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'WHAT ISEXCISEDUTY? :
.
It is a duty imposed on goods and services manufactured
in Kenya or imported into Kenya as specified in the 5th
Schedule of the Customs and Excise Act Cap 472 of the 0
Laws of Kenya. The Excise duty on locally manufactured
excisable goods and services is payable to the
Commissioner of Domestic Taxes at the rates specified in
the 5th Schedule. Excise duty on imported goods and
services is accounted to the Commissioner, Customs
Services Department.
Goods and Services liable to Excise Duty
. Cigarettes (rates as per the table below)
,(RSP means Retail Selling Price, 7mille equals 7000 sticks)
Description t 1 Rateof Duty in Kshs ,i
Juices,
7% of the excisable value
Mineral water, ice blocks
5% or Shs.3per liter
Sodas,
li7%of the excisable value
'Cosmetics,
5% of the excisable value
Petroleum jelly,
5% of the excisable value
Other non-alcoholic beverages
7% of the excisable value
Malted Beers
Kshs. 54 perJitre
Beer not made from malt
' Kshs.45 per litre
Wine
Kshs. 70 perlitre or 50 % of
the excisable value
Spirit
Kshs. 120 per litre or 65 %
of the excisDle value
Mobile Cellular phone services
10% of thexcisable vWe
Other wireless telephone services
10% of the excisable valu.e
Plastic shopping bags
50% of the excisable valu.e
Processed Tobacco
130% of excisable Value
Ica!go:y ,'.. Description ',..'.. "..'i' .""'....','."."",<Rateofexde duty
, ",' ',' . ',' ,", , , ,', ',' ""', ',' ','' Kshs. per Mille "
A
Plain cigiuettes or plain cIgarettes
RSP ofgpto Kshs.25QOper mille
700
B
Soft CapCigarettesOf<72 mm or
Soft Cap cigarettes withRSP of
Kshs. 250hKsh.3500permilie
1,000
C
Soft Cap ,cigarettes of > 7.2 mm
or SoftCilP cigarettes ',\(ith RSPof
Ksh.3S01ij$hA500 pe.miJle
1,500
D
HingelidorRSP of mOre than
Kshs.45QQ;pr,mille
2,500
.,"~:"1(-\ S OF DUTIES/'t' go
.. - " ' ,
... - Specific Duty"rate:refers to where a specified amount of
tax is charged per unit of measure of an excisable
product e.g. Kshs 120 per litre of spirit.
A<ly~r(jr~mPt.tty rate:, refers to a percentage rate of duty
charged on tbe value of an excisable product. For
imports the tax is charged on the (:F(cost, Ll!sUrance iiJ..nd
freight) determined in accordance with custQms
valuation and for locally manufactured excisable goods
advalorem rate is charged on thepx~factory selling price.
Where a prodUct or service attracts both ad valorem and
specific tax rates, the rate yielding higher duty shall be
applied.
Who shouldpayexdseduty?\r ~
All manufactUrers, providers and importers of excisable
goods and services should pay excise duty.
."
..'" T;:~ati'~r{6fs,' ifiiS
,
" <'j' ,
" ,
Excise duty on spirit shall be charged and collected upon
.delivery of the spirit from the compounders (Bottl~rs).
Duty paid on neutral spirit upon delivery from the
distillery or importation shall be deducted in.accordance
with, section 149A. Where a compounder is also a
distiller, duty shall be charged only once atthe poinrof
delivery of the finished spirit product.
. , Licenshl' of~~tnuf~cturer~ '/ ~
All manufaCturers of exCisable goods mustbe licensed
by the Commissioner, Domestic taxes upOI! application
and payment of the prescribed fees. The licenses are
renewable each year before 31st of Decen}ber.
',' Collediqn and paymenf( ~'
The duty on locally manufactured excisable goods is
charged at the rate in force when goods liable are
delivered from an excise stock room or when services
are rendered. The amount of duty charged is payable,
through an excise return, to the Commissioner,
Domestic Taxes, on or before the 20th date of the month
following the month in which the goods/services
sold or offered.
J' ','",
J Penalties ",: ,
.
A person, who fails to file a return, is liable to a default
penalty of 10,000 shillings or 5% of amount of duty
payable, whichever is higher as provided for under
section 96 of the Customs and Excise Act. This in
addition to interest of 2% per month or part thereof
charged on the amount that remains unpaid.
Failure to comply with the law and regulations under the
Customs and Excise Act can attract a fine of up to kshs.
1.5 Million and/or a prison term not exceeding 3 years
and the goods in respect of which the offence has been
committed are liableto forfeiture.
- hcise Stamps on Win~s and Spirits { ~
The application of Excise stamps are governed by the
Excise Stamps Regulations 2008. It is a requirement to
affix Excise Stamps on packets or containers of cigarettes
and wines or spirits.
What are theparticuli)rs of an excise stamp?
Every Excise stamps shall:
. be Serially numbered,
. bear an ultraviolet working,
. bear the court of armS,
. bear the words "Kenya Revenue Authority"
and the logo thereof,
. distinguished to denote packaging sizes Or
products.
, How the stamps are affix~d? ('~
The stamp shall be affixed on tearing joint of all bottles
or containers of cigarettes, ~ines and spirits in suc~
manner that it shall be: dearly visible when the
container is displayed for sale, and damaged on opening
the bottle or container.
Who affixes excise stamps?; "'~'..
Excise Stamps are supplied by KRAto manufacturers and
Importers of Cigarettes, Wines and Spirits registered by
the Commissioner for the purpose of affixing the stamp!>
as covered under regulations 143 and 188 (2) of cap 472
respectively.
l
at offenceS<ir~rel~.t~<t
r gulations?
Any person who-
. Imports cigarettes, wines or spirits WitooTithaving
been registered with the commissioner as provided
for in the regulations.
. Fails to maintain such monthly excise stamp register
or record as the commi~,~ioner may require
..Fails to affix an excise stamp to a cigarette, wine or
spirit container i.naccordance with the regulations
. Prints over or defaces an excise stamp fixed on a
bottle or container
. Knowingly submits a return which is incorrect in
any manner
. Fails to furnish any information that the
commissioner may require
. Has possession of cigarettes, wines and spirits in
respect of which the excise stamp has not been
affixed and which are not destined for export
.Attempts to acquire or acquires an excise stamp
without prior authority from the commissioner
. Prints, makes or in any way creates an excise stamp
without the authqrity of the commissioner
S~An be guilty of an offence and liable to a fine not
exceeding one million five hundred thousand shillings
and any cigarettes, wines and spirits in respect of which
an offence is committed under the regula~ions shall be
forfeited and disposed of in such manner as the
commissioner may deem fit.
non compliance to
How do I get registered by the Commissioner for
purposes of affixing excise stamps?
A manufacturer licensed by the commissioner to
manufacture cigarettes, wines and spirits qualifies to affix
excise stamps. An importer may apply for registration for
purposes of affixing excise stamps and may be registered
after fulfilling the conditions prescribed by the'
commissioner.
Subject to being registered, an importer or manufacturer
shall make an application for excise stamps at least 60
days prior to the date of importation or manufacture.
HOW DO I APPLY? .' ~
,
Application forms (including supP9rting documents)
shall be sent to the Commissioner Dbmestic Taxes - LTO
on the address provided her.ein below.
c~ Rebate and R~mission of Excise Duty"""'c-('lJ.~
8
Remissions are granted to licensed Excise Manufacturers
and registered service providers upon export or delivery
of goods and services to privileged and approved
persons and institutions. The Commissioner may grant
rebates upon proof of delivery of excisable
goods/services for export or to other legally exempt
bodies. Remission shall be granted upon application and
fulfillment of the requirements prescribed by the
Commissioner.
Licensed manufacturers and service providers are
required to provide detaiJs of all remissions and rebates
in the Excise Return for the month.
Excise Refunds ('
,
Excise Refunds are granted to local manufacturers that
use plastic bags and sacks, on which excise duty has
been paid, in the packaging of gOQds, Refunds may also
be granted for duty paid in error aQd tOjexempt persons!
who are entitled to remission and who for good reason'
paid duty for goods purchased or services received.
Application for refunds shall be made to the
Commissioner on Form E.9 not later than 12 months
from the date the duty became due.
~~ KENYA REVENUE
fji~ i}UTHORlTY
Enquiries
For further information please visit any KRA
station near you or contact our Times Tower
offices on:
Tel. 2815036, 2813061, or 2815054, Fax 341290
Commissioner of Domestic Taxes -LTO
P.O Box 30742 - 00100
Nairobi, Kenya
Oremail: Ito@kra.go.ke