Kimani Ichung’wah pushes for higher taxes on alcohol, SIM cards

Kikuyu Member of Parliament Kimani Ichung’wah has proposed higher taxation on various commodities including alcoholic drinks and imported SIM cards in changes to the Financial Bill 2022 that was debated last week.

In his proposal, Ichung’wah wants the National Assembly to increase excise duty on wine, spirits and beer by 20.2 per cent and 25.6 per cent. He also wants a new Ksh.50 exercise duty imposed on every imported ready-to-use SIM card.

If the proposals are adopted, the price of a litre of beer will rise to Ksh.150 from Ksh.121 plus the price of a bottle of beer which will go up by Ksh.15.

The lawmaker’s proposal opposes recommendations by the National Assembly Finance Committee which declined to impose the recommendation by the National Treasury to increase taxes on alcoholic drinks. The Treasury had proposed an increase in excise duty on beer to Ksh134, Ksh229 for wine and ksh335.30 for spirits per litre.

A Gladys Wanga-led committee had however, rejected the proposal by CS Ukur Yatani because higher taxes on alcohol would push prices beyond the affordable levels and could lead to increased uptake of illicit brews.

“Increase in excise duty on beer may increase uptake of illicit brew. Additionally, the excise rate…had been revised in the Finance Act 2021, and should therefore be given some time before review,” the budget committee said.

Ichung’wah, however, noted that the exercise duties on the commodities should be increased but they should be implemented in line with the inflation rate after every two years as opposed to current annual changes.

Ichung’wah, who is an adamant supporter of Deputy President William Ruto also wants the House to introduce a 25 per cent excise duty on earnings by media houses gained from betting and alcohol advertisement.

“Excise duty on fees charged on advertisement by television stations, print media, billboards, FM radio stations and digital media on alcoholic beverages, betting and gaming, lottery and prize competitions shall be at 25 per cent,” Mr Ichung’wah proposed.

Ichung’wah’s proposal comes days after he criticised the government for imposing higher taxes on basic commodities and vowed to rally other Kenya Kwanza-allied MPs to shut down the Finance Bill 2022. According to him, the proposed taxes on the commodities was a burden to Kenyan households.