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KRA Inflation Adjustment on Specific Rates under the Excise Duty Act & Miscellaneous Fees & Levies Act

KRA Commissioner General is required under the Excise Duty Act, 2015, and Miscellaneous Fees and Levies Act, 2016 to adjust annually, the specific rates of excise duty/export levy to consider the rate of inflation.

In line with the above provisions, Kenya Revenue Authority (KRA) issued out new inflation adjustment rates effective from 1st October 2022 in tandem with the cost-of-living measure or the average rate of inflation. The specific rates were adjusted to mirror the average annual inflation rate for the financial year 2021/2022 which stood at 6.3 percent.

Exporters will now pay KES 22,323.00 ($186.03) per tonne of iron ore and other mineral concentrates from KES 21,000.00 ($175) while the inflation tax on skins, tails, paws and other animal parts increased to KES 66.00 ($0.55) per kilo from KES 62.00 ($0.52). The new export levy rates are set to make Kenyan exports less competitive in the global markets given that traders will increase prices of their commodities to absorb the higher costs.

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