Taxation
Players in the tobacco sector have decried the low involved by Members of Parliament (MP’s) saying that the legislators are not actively involved in health issues thus not many policies are being passed and implanted.
National Taxpayers Association (NTA) Chairman Peter Kubebea said that the advocacy at community level is not that great as he called on MP’s to put the interest of Kenyans first and pass people friendly laws like ones which can regulate use of tobacco.
Speaking in Nairobi on Thursday during the 3rd Tobacco Taxation Conference held with the aim of safeguarding public health through progressive regulatory prices, Kubebea said that the conference presents an opportunity to delve into regulatory gaps and identify solutions that will protect public health.
“The National Taxpayers Association has long advocated for progressive policies that promote public accountability,” said Kubebea. He further noted that the products that are marked as safer alternatives are the ones that are contributing to increased addiction levels and deaths.
He added that the taxes collected from harmful products like tobacco should be used for the benefit of all citizens, especially those affected by tobacco use.
NTA Executive Director Ms Irene Otieno stated that the forum was conducted following a number of issues regarding the prudent utilization of tax payers’ money, finding a balance between industries and public health, effective regulation of new generation products, need to know if the tax regime can control the use of tobacco, promoting public health and economic equity and ensuring that enough resources are available for health systems.
“The World Health Organisation (WHO) has consistently advocated for tobacco taxation as an effective strategy to reduce consumption and prevent tobacco related diseases,” said Mr Mutembei Nyagah, Kenya Revenue Authority (KRA) Deputy Commissioner, Domestic taxes Enforcement Division.
He explained the types of taxes levied on tobacco which are excise duty, Value Added Tax (VAT) 16% and Import duty from 25% to 35%.
“As we all know, tobacco consumption is not just a personal choice, it has profound implications for health care systems, economics and communities. In Kenya, the statistics are alarming where 9% are currently using tobacco and nicotine products according to the National status report on Tobacco use in Kenya-2022,” said Dr Naomi Shaban, Tobacco Control Board chair.
She added that the use of tobacco contributes significantly to the burdened non-communicable diseases and accounts for a staggering number of preventable deaths. She pointed out that the world organization framework convention on tobacco control underscores the importance of price and taxation measures as one of the most effective strategies of reducing tobacco use. She called upon people to take action to reduce its usage rate.