Treasury Cabinet Secretary Njuguna Ndung'u has proposed to amend the Excise Duty on wines and beer from specific rates per litre to the rate of Sh22.50 per cent litre of pure alcohol.
He proposed to change the Excise Duty on spirits from specific rates per litre to Sh16 per cent litre of pure alcohol.
"We want to start taxing alcohol beverages on the basis of alcohol content," he said.
"This new structure of taxation based on alcoholic content does not distort the markets and does not affect the investment decision and is expected to encourage the responsible consumption behaviour of these alcoholic beverages," he commented.
Excise duty on alcoholic beverages has also been proposed to change from within 24 hours to within 5five working days after removal from the stock room.
"The 24-hour time frame has posed administrative and cash flow challenges to the taxpayers," he said.
Njuguna additionally proposed to increase the Excise duty rates on nicotine or nicotine substitutes from Sh1,594.50 per kilogramme to Sh2,000 per kilogramme.
He further proposed the implementation of Excise Duty on cigarettes and nicotine products with and without filters to the rate of Sh4,100 per mile.
"This will reduce the incentive for misdeclaration and illicit trade and to address their adverse effects on human beings," he said.
He also proposed to increase excise duty on liquid nicotine for electronic cigarettes from Sh70 per millilitre to Sh100 per millilitre.
