BEER CHEAPER IN UGANDA, TANZANIA ON REDUCED COST OF EXCISE STAMPS
KAMPALA - More Kenyans living in border points may find it pocket-friendly to cross into Tanzania and Uganda for a beer after the two countries slashed the price of excise stamps, one of the cost components of the beverage.
Tanzania last month lowered the excise stamps affixed on excisable goods including beer and spirits, pushing down the cost of producing a tipple.
This is the second time Tanzania has lowered the price of excise stamps, even as Kenya plans to double the price in what is aimed at helping the Kenya Revenue Authority (KRA) offset a Ksh4.5 billion ($30.72 million) the taxman owes Siscpa, the Swiss company contracted to manufacture the stamps.
On February 5, 2024, the Tanzania Revenue Authority (TRA) published new lower electronic tax stamp prices.
“In accordance with Regulation 6(2) of the Electronic Tax Stamps Regulation, 2018 the Commissioner-General of Tanzania Revenue Authority wishes to announce new prices (fees) for tax stamps following the successful completion of negotiations involving TRA, Confederation of Tanzania Industries and the vendor Siscpa SA,” reads the notice signed by TRA Commissioner-General Alphayo Kidata.
“Manufacturers, producers, and importers of excisable goods listed in the First Schedule of the Electronic Tax Stamps Regulation 2018 shall purchase stamps from the vendor (M/s Siscpa Tanzania Ltd) at the prices attached.”
Kenyan manufacturers, just like their peers in Tanzania and Uganda, had expected the cost of the stamps to drop by more than half, according to a fresh contract the KRA signed with Siscpa.
Since 2021, the price of beer in Tanzania and Uganda has become relatively cheaper, compared with Kenya, after the governments of the two countries reviewed the price of excise stamps on beer bottles.
Kenya plans to increase the price of stamps affixed on bottles and double it to Ksh3 ($0.02).
Tanzania, which reduced the price of excise stamps in 2021, lowered it further, effective January
this year contributing to lower prices of beer in the region’s second-largest economy.
For locally made beer, the price of stamps has dropped from Ksh1.05 ($0.0072) to 85 cents ($0.0058).
For imported beer, the stamp price dropped from Ksh1.32 ($0.0089) to Ksh1.02 ($0.0070), helping ease the pressure on the bottom line of alcohol manufacturers such as East African Breweries Ltd (EABL) which has operations in Tanzania, Uganda, and Kenya.