Healthcare advocates have praised the administration’s proposal to create a uniform tax structure for cigarettes.

Ministry of Finance CS Njuguna Ndung’u proposed that cigarettes with and without filters will now attract the same tax rate.

Previously, unfiltered cigarettes had a lower tax, making them cheaper.

While significant increases in excise taxes are known to be the most effective policy for reducing cigarette smoking, the impact of a tax increase on consumption is significantly reduced if it is easy for smokers to switch to cheaper brands.

In its budget statement on Thursday, the Finance Ministry said the uniform tax will also prevent cigarette companies from easily defrauding tax collectors.

“I also propose to review the excise duty structure on cigarettes in line with the research conducted and recommend that harmonization of excise rates on cigarettes with and without filters be recommended at a rate of Sh4,100 per mile (one thousand cigarettes). This will reduce the incentive for misdeclarations and illegal trade,” he said.

The World Health Organization says a uniform excise duty is easier to manage than a tiered system, where variable rates apply to tobacco products.

He also increased taxes on nicotine, which has been used to introduce a new line of products such as pouches.

“I propose to increase the excise duty rate from Sh1,594.50 per kilogram to Sh2,000 per kilogram on products containing nicotine or nicotine substitutes to address its negative effects on human health,” Ndung’u said.

“This excludes the approved medicines. In addition, I propose to increase the excise rate on liquid nicotine for electronic cigarettes from Sh70 per milliliter to Sh100 per milliliter,” he added.

Head of the Kenya Tobacco Control and Health Promotion Alliance Joel Gitali said the change is important to protect poor Kenyans.

“It’s good that they have harmonized taxes on cigarettes so that people don’t have to switch to unfiltered brands because they are cheaper. That is what we wanted,” Gitali told the Star.

Gitali said the increase was a step towards the WHO’s recommended rates, where taxes account for 70 percent of the retail price of tobacco products.

He urged MPs not to fall prey to cigarette companies when discussing the proposals.

“We pray that MPs do not do what they did in 2022 when the CS made proposals and changed them in the house. We do not need such retrogressive amendments. Any revision must be upwards,” he said.

“The tobacco industry is working hard and has fought for tax cuts and furloughs, but we pray that won’t happen.”

The International Institute for Legislative Affairs has also lobbied for higher taxes on tobacco and nicotine products.

The National Taxpayers Association praised the uniform tax, but said it needs to increase.

“This tax will complement other regulations currently in place to reduce tobacco use, such as; smoke-free zones, ban on advertising and promotion of tobacco products, graphic health warnings and sales restrictions,” says NTA in its policy letter on tobacco tax.

Tobacco has no benefit to the human body. According to the Ministry of Health, about 9,000 Kenyans die every year from diseases such as cancer, brain and heart disease.