Kenyan Civil Society Organizations Question Tobacco Tax Measures

According to a report from People's Daily on May 24th, a group of civil society organizations (CSOs) from Kenya's policy and health departments have raised concerns about the financial bill proposed by the government, especially the tax measures on tobacco and its products.

The organization expressed concerns about the low taxation on tobacco products, especially new smokeless tobacco products, during a media campaign.

These organizations led by the National Taxpayers Association (NTA) want to know why these products are prioritized in the national budget in Kenya. The organization points out that behind these products are foreign industry participants, as some governments producing these products have realized they pose a danger to public health.

In response to the current tobacco product tax policy, these organizations have put forward four suggestions to increase consumption tax to curb sales. NTA and the International Institute for Legislative Affairs have made some key recommendations for the 2024 fiscal year budget based on findings from the tobacco tax advocacy project in Kenya.

The first proposal is to raise the tax on filtered cigarettes like Dunhill from the current 4067.03 Hong Kong dollars (30.64 US dollars) per thousand sticks to 4100 Hong Kong dollars (30.89 US dollars), increasing the price of each cigarette by one cent.

The second proposal is to increase the tax on unfiltered cigarettes, from 2,926 yen (22.04 US dollars) per thousand to 4,100 yen (30.89 US dollars), equivalent to a price increase of 1.2 cents per cigarette.

Another proposal is to increase the tax on non-combustible tobacco products containing nicotine or nicotine substitutes, for inhalation and oral use, from the current £1594.50 per kilogram ($12.01) to £2000 ($15.07).