The taxman should consider reversing this increase. Consumption of excisable goods within the manufacturer s factory is treated as a removal for excise duty purposes.
The application for the refund must be done within twelve months from the date the above conditions are fulfilled. This is likely to result in differences in interpretation between the KRA and taxpayers.
In any other case, the value is the open market value of the services. Around the world[ edit ] The examples and perspective in this Western world may not represent a worldwide view of the subject. This will impact lower income persons more, and is a blow to efforts made in creating an equitable tax field.
However, this will be to the detriment of taxpayers who will suffer the double blow of increased prices as a result of inflation and taxation pressures. A notable change however is the exclusion of insurance premiums and premium based or related commissions from the definition of fees subject to excise duty.
Alcoholic liquors for human consumption are subject to the state government for levying excise duty. Who is liable to pay excise duty? This is a welcome relief to the Analysis of an excise duty the industry which had lobbied against the levying of excise duty on insurance commissions on the basis that it was difficult to administer and would derail efforts to extend insurance coverage in the country.
In 18th-century Englandand for a brief time in British North Americagambling itself was for a time also subject to taxation, in the form of stamp dutywhereby a revenue stamp had to be placed on the ace of spades in every pack of cards to demonstrate that the duty had been paid hence the elaborate designs that evolved on this card in many packs as a result.
The liability to pay excise duty is always on the manufacturer or producer of goods. It is critical to note that the taxman has spared petroleum products the duty hike. Newspapers and advertising[ edit ] Newspapers were taxed in the United Kingdom from until Not all aspects of the Act are negative, the Act is simpler that the previous legislation which will make it easier for taxpayers to comply.
In the case of tobacco or alcoholfor example, producers may be given or required to buy a certain bulk amount of excise stamps from the government and are then obliged to affix one to every packet of cigarettes or bottle of spirits produced.
Manufacture means bringing into existence a new substance.
Annual excise duty adjustments The new Act provides that the rates of excise duty on excisable goods shall be adjusted for inflation at the beginning of every financial year 1 July. That was partly intended to widen the tax bracket by bringing in the manufacturers of non-alcoholic beverages and bottled water, whose uptake has been rising.
This resulted in a situation where even out-of-date newspapers were widely sought-after. People deliberately bricked up windows to avoid window tax, used much larger bricks to reduce their liability for brick tax, or bought plain paper and had it filled in later to avoid wallpaper tax.
For instance an 8 year vehicle costing KShs 5, after customs duty will suffer excise duty of KShsdown from KShs 1, while a KShsvehicle of a similar age will suffer excise duty of KShsup from KShsunder the previous regime.
A government-owned monopoly - such as an alcohol monopoly - is another method of ensuring the excise is paid. Licensing The new Act requires persons who intend to supply various excisable to apply to the Commissioner for an excise duty license.
Excisable goods exported under customs control; Excisable goods that the manufacturer has destroyed, with the prior written permission of the Commissioner, under supervision of an authorised officer; Denatured spirits for use in the manufacture of gasohol or as a heating fuel; 7 Excise duty rates Administrative provisions relating to management of the excise duty regime remain largely the same.
Repacking, relabeling, putting or altering MRP is deemed manufacture in case of about around articles covered under MRP valuation provision. In some cases, partial or full exemption is available.
That means even if goods are mentioned in the Central Excise Tariff Act,but these goods are not being capable of marketable, then excise duty is not levying on it. Background In the budget speech, the Cabinet Secretary for Finance, promised to introduce a simple and modern excise duty legislation that would align local excise duty administration with international best practice.
Excise tax sparks beer price war as changes effected There needs to be a balance between collection of taxes and targeting of policy effect on critical areas such as health.
This is a welcome relief especially for manufacturers of excisable goods that are packaged in returnable containers such as sodas. However, in a bid to increase revenue, the new Act has increased excise duty rates on some commodities.
Commissions on insurance premiums have now been excluded from excise duty. Some traders will be forced to shoulder a portion of the excise duty to protect their sales resulting in lower margins.
Critically looking at the state of the economy, the KRA was not justified to increase these specific duties on the premise of inflation. Kenyans should tighten their belts as the taxman is under strict instructions to collect so as to feed the Sh3 trillion budget.
Excisable value of goods and services The excisable value of excisable goods manufactured in Kenya is the ex-factory selling price. Some poor people even forced themselves to live in cold dark rooms in order to avoid paying these taxes.
This is defined to exclude the cost of returnable containers.› KPMG analysis of Excise Duty Act, KPMG analysis of Excise Duty Act, The Excise Duty Act, which takes effect on 1 Decemberpresents a new dawn for the administration of excise duty in Kenya through the legislation of a stand-alone act for administration and collection of excise duty.
Free Essay: Daniel Ströbel - Analysis of an excise duty: The policy of tobacco taxes in Germany Analysis of an excise duty The policy of tobacco taxes in. and The Excise Duty (Excisable Goods Management System) Regulations, through Legal Notices 51 and 52 respectively of the Kenya Gazette Supplement Number Below is our analysis of the new Regulations.
Till the enactment of the Finance Bill,the Additional Duty of Excise (Road Cess) leviable on domestically manufactured and produced motor spirit commonly known as petrol and high speed diesel oil are being fully exempted. Customs and Excise Duty Customs and Excise Duty.
Share. KPMG analysis of Excise Duty Act KPMG analysis of Excise Duty Act. The Excise Duty Act, which takes effect on 1 Decemberpresents a new dawn for the administration of excise duty in Kenya.
The Excise Duty Act, which takes effect on 1 Decemberpresents a new dawn. Excise Duty Act Analysis | 3 Preamble The Excise Duty Bill was tabled in parliament on 11 June and passed by parliament on 27 AugustDownload