Taxman turns to beer consumers for more cash

BeerDecember 15, 2008: A deepening of the Government’s budget deficit could spell trouble for millions of Kenyans in the form of highly-priced beers this festive season.

Treasury has introduced new tax measures that could see the prices of non-malted beers rise by another Sh5 only five months  after  they were revised upwards in the June Budget.

Parliament has passed an amendment to the Finance Bill that will increase excise tax on non-malted beer from Sh36 to Sh45 per litre, translating to an additional Sh5 per 500ml bottle.

Non-malted beers have generally been seen as the poor man’s alcohol and a Sh5 increment in its pricing is expected to add an inflationary burden on consumers who are already grappling with highly-priced food and transport.

Parliament passed the Finance Bill two weeks ago and it is now only awaiting  presidential assent. Should President Kibaki accept the law as passed  by MPs, the total increment in excise tax on non-malt beer shall have climbed by 70 per cent in five months.