Kenya proposes tax reduction

A number of organizations have written to Kenya’s Treasury Cabinet Secretary Henry Rotich to protest about a proposal to lower the taxes on unfiltered cigarettes, according to a story in The Star.

If the proposal were implemented, the prices of unfiltered cigarettes could decline by 28 percent, making them more affordable, said the head of the Consumer Information Network (CIN) Samuel Ochieng.

‘This means cigarettes will become more available to children, youths and vulnerable members of our society who are already adversely affected by the economic and health effects of tobacco use,’ CIN said in a letter to Rotich.

The government recently enacted strong legislation to discourage smoking but, in announcing his budget proposals last week, Rotich suggested a two-tier tax structure of Sh2,500 for every 1,000 filtered cigarettes and Sh1,800 for every 1,000 plain cigarettes. Previously, all cigarettes were taxed at Sh2,500 per 1,000.

“This will create equity and fairness in the tobacco industry and prevent job losses in the sector,” Rotich said.

But the head of the International Institute for Legislative Affairs Emma Wanyonyi said the cabinet secretary’s proposal could be illegal.

Wanyonyi said it contravened the World Health Organization’s Framework Convention on Tobacco Control, which Kenya signed and ratified in 2004.

The treaty bans preferential treatment for certain tobacco products.