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Tobacco firm says new stamp duty will choke profits

BAT says new tax will increase illicit trade in tobacco products. [Photo: File, Standard]

The Kenya Revenue Authority is locked in a battle with cigarette makers for more revenues barely two months into implementing new tax measures.

National Treasury Cabinet Secretary Henry Rotich slapped the cigarette industry with new stamp duty, increasing it from Sh1.50 per packet to Sh2.80. This took effect shortly after the budget was read in March.

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