Blow for smokers, drinkers in Rotich’s budget

BudgetTreasury CS Henry Rotich

Cigarettes, wines and spirits prices are set to rise after the government increased the excise duty on the products.

On Thursday treasury cabinet secretary Henry Rotich said the government will raise the excise duty on cigarettes, wines and spirits by fifteen percent.

He said the measures are aimed at mobilizing resources for the Sh 3.02 trillion 2019/20.

Rotich said a 750 ml wine bottle will cost Sh 18 above the current rate with cigarette costs set to rise by Sh 8.

“Excise duty on a 750 ml wine bottle will be Sh 136. The duty of a bottle of whisky will go up by Sh 24 to Sh 182 for a 750 ml bottle while a packet of cigarettes will go up to Sh 61,” he said.

Also affected by excise duty increment include high end vehicles whose excise duty will now range from 30 to 35 per cent. Vehicles with the rate for 1500 cc engine cars set to vary between 20 and 25 per cent.

The excise duty on vehicles powered by electricity will be reduced by 10 per cent in a bid to encourage the use of environmental friendly automobiles.

According to the spending plan highlighted by the CS, the big 4 agenda was allocated Sh 450 billion which represents 14.6 per cent of the Sh 3.02 trillion budget.

Agriculture, manufacturing, universal health and affordable housing projects will  receive Sh55.77 billion, Sh125.4 billion Sh82.8 billion and Sh103.2 billion in the medium term.

Rotich capped the national government spending at Sh 1.8 trillion with Parliament  and Judiciary set to receive Sh43.8 billion and Sh18.9 billion respectively.

Counties have been allocated Sh372.6 billion with Sh5.8 billion set to be channeled to the Equalization Fund.

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