Petrol prices to rise again
The price of petrol, beer, bottled water, juice and cigarettes will go up by 5.15 per cent next month in line with inflation adjustment.
This is after inflation for the month of June came at 5.7 per cent giving the taxman a basis to adjust prices on excisable goods annually.
Last year, KRA adjusted the excise duty by 5.2 per cent following a change in the law allowing the taxman to adjust the specific rate of excise duty every year taking into account inflation.
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“The Commissioner General will adjust the rates of excise duty using the average inflation rate for the financial year 2018/2019 as determined by the Kenya National Bureau of Statistics. The adjusted rates will be effective from 1st July 2019,” the taxman said on its website.
The Finance Bill 2019, however, wants to change the date of adjusting excise duty to October so that prices do not rise in July then again after new tax measures are enacted by Parliament but are adjusted together.
Alcoholic beverages, tobacco and narcotics was 8.9 per cent higher in June this year than a similar period last year. Transport costs rose by 10.9 per cent on higher petroleum prices.
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“The effect of the increment will be immediate with costs of transport, food, travel and generally cost of doing business escalating,” said Cofek Secretary General Stephen Mutoro.
The main driver of higher costs of goods in June was electricity and kerosene, which went up by double-digit rates year-on-year.
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KNBS Director General Zachary Mwangi said food and non-alcoholics indexes fell on favourable weather conditions that helped boost food production.
“The prices of spinach, sukuma wiki and tomatoes recorded decrease in June compared to the previous month,” Mwangi said.
However, prices maize grain, beans, green grams and sifted maize flour increased during the month.
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