Alcohol makers oppose increased tax rates on spirits

Illicit alcohol comprises 59 per cent of the total alcohol consumed in Kenya. [iStockphoto]

The Alcoholic Beverage Association of Kenya (Abak) has protested the 67 per cent excise tax hike proposed in the National Treasury's Medium-Term Revenue Strategy, saying it will cripple the spirits market and aggravate the illicit alcohol menace currently bedeviling the industry.

According to an analysis by the East African Community (EAC) tax policy sub-committee, the tax proposals backed by the International Monetary Fund (IMF) seek to raise the minimum excise rate based on litres of pure alcohol (LPA) from the current Sh356.40 to Sh596.