State removes VAT on tea, imposes exercise duty on juice

Treasury Cabinet Secretary Njuguna Ndung'u has proposed an exercise duty on powdered juice at a rate of Sh25 per kg. 

Speaking during the budget reading in Parliament, the CS said there has been an increase in the supply of powdered juice.

"Powdered juice is not subjected to exercise duty and this creates an unfairness in taxation of juices," he said.

Further, Ndung'u proposes the removal of Value Added Tax on tea purchased from factories or tea auction centres for value addition and subsequent export. 

"Currently tea purchased for local value addition is vatable affecting the cash flow of tea exported. The move will improve the cash flows of tea exporters involved in local value addition, " he said. 

The CS also proposed an introduction of excise duty on imported furniture at a rate of 30 per cent of the customs value excluding furniture originating from EAC countries

"There has been an increase in the importation of furniture especially office furniture which has negatively affected the local carpenters and artisans," he said.