A section of Meru residents has called for urgent intervention from both the National and County government to lower the cost of living.
The residents who spoke to KBC urged newly elected leaders to come up with measures that will prevent Kenya Revenue Authority from increasing excise duty.
They said the move by KRA could see the prices of basic commodities increase causing Kenyans more suffering.
They noted that already most people are going to bed hungry owing to the high cost of living, noting that life would be unbearable if KRA implements the excise duty increase.
KRA intends to increase excise duty by 6.3pc in the next 30 days beginning October 1 due to rising inflation that rose to a 62-month high of 8.5pc in August.
The hike is coming at a time when Kenyans are struggling with a record high cost of living which has accelerated in the last 12 months
“The specific rates will be adjusted using the average inflation rate for the financial year 2021/2022 of 6.3pc, as determined by the Kenya National Bureau of Statistics, and the adjusted specific rates will be effective from October 1, 2022,” said KRA.
Among the goods to be subjected to the increment include bottled water, soft drinks, cigarettes, alcohol, fuels, and motor vehicles while services include telephone and internet data services, fees charged for money transfer services, and other fees charged by financial institutions.
The adjustment is in line with the 2015 finance law that gives the taxman powers to revise duty upwards in line with inflation records.
However, manufacturers have in the past lobbied against the move due to the effects of Covid-19 and the ongoing disruptions in the global economy.
Also read https://www.kbc.co.ke/kra-plans-to-hike-excise-tax-by-6-3pc-to-hurt-consumers/
