You asked: What is excise duty in Kenya?

What is excise tax in Kenya?

Excise tax in Kenya is tax on the sale, use or importation of specific goods and services, such as tobacco products, alcohol and banking services.

What is excise duty how it is calculated?

Excise duty can be explained as a kind of indirect tax . Excise duty refers to the tax amount that gets included in the selling price. The other name of excise duty is excise tax. … Retailers need to calculate the excise duty from time to time and must ensure the timely payment of the same.

What does excise duty mean?

Excise duties and levies are imposed mostly on high-volume daily consumable products (e.g. petroleum and alcohol and tobacco products) as well as certain non-essential or luxury items (e.g. electronic equipment and cosmetics).

What is excise duty on loans in Kenya?

With the introduction of the 20% excise duty on “fees or commissions” earned by financial institutions on a loan, lenders scrambled to review the cost of their loans to comply with the law.

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Who pays VAT in Kenya?

It is levied on the use of taxable products and services supplied or imported into Kenya. The tax is collected by registered persons at designated points in the supply chain and remitted to KRA. Only registered traders with an annual turnover of KShs. 5 million and above are required to charge VAT.

What are the types of excise duty?

Types of Excise Duty

  • Basic Excise Duty: Basic Excise Duty is levied under Section 3 of the Central Excises and Salt Act, 1944. …
  • Special Excise Duty: Central Excise Duty is charged under Section 37 of the Finance Act, 1978. …
  • Education Cess on Excise Duty: According to Section 93 of Finance (No.

What are the features of excise duty?

By charging excise duty, the government ensures that the entire manufacturing section is involved in the taxation. These taxes that are charged can then be used as a means of controlling the sales of goods including alcohol and narcotic substances.

What is difference between custom duty and excise duty?

While excise duty is levied on goods produced or manufactured within the country, custom duty applies to the goods that are sold in India but were produced in a different country. Excise duty is to be paid by the manufacturer of the goods and not by the consumer. Custom duty is to be paid by the importer of the goods.

Who pays the excise duty?

Ans: The term “Excisable Goods” means the goods which are specified in the first Schedule and the second schedule to the Central Excise Tariff Act, 1985 as being subject to Excise Duty. 6. Who is liable to pay Excise Duty? Ans: The manufacturer or the producer of goods is liable to pay Excise Duty.

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How much is customs and excise duty?

Customs Duty

2.5%, but rates are lower for some goods. The rate depends on the type of goods and where they came from.

How does excise tax work?

Excise taxes are taxes required on specific goods or services like fuel, tobacco, and alcohol. Excise taxes are primarily taxes that must be paid by businesses, usually increasing prices for consumers indirectly. Excise taxes can be ad valorem (paid by percentage) or specific (cost charged by unit).

What is bank excise duty?

Specifically, the Finance Act, 2012 introduced Excise Duty on “fees charged for money transfer services by cellular phone service providers, banks, money transfer agencies, other financial service providers and other fees charged by financial institutions.”

How excise duty will affect loans?

Amendments to the the Excise Duty Act carried in the 2021 Finance Act effected a 20 per cent duty charge to fees and commissions on loans, a change which took effect on July 1. “This is expected to negatively affect the growth of fees and commission income.

What does 20% excise duty on loans mean?

One of the taxes introduced under the Finance Bill 2021 is a 20% excise duty on all commissions and fees charged on loans. … The new taxes are expected to have the greatest impact on mobile loans, since most digital lenders make the majority of their income from loan commissions and fees, rather than interest income.