SIN tax increases proposed by the Government threaten to deprive Kenyan smokers of their lifeline to a healthier future and risk delivering a massive boost to illicit trade, a lobby that advocates for less harmful options to help smokers quit has warned.
By more than doubling the excise duty on alternative nicotine products, such as e-cigarettes and nicotine pouches, the Finance Bill 2022 would put these significantly safer options out of reach of smokers who need them to quit their addiction to cancer-causing tobacco, the experts said.
“The proposed tax increases will unnecessarily condemn thousands of smokers to disease and premature death,” said Joseph Magero, Chairman of the Campaign for Safer Alternatives (CASA), who hosted a press conference alongside Dr Kariuki Michael and Dr Nick Mutisya, from the University of Nairobi’s Faculty of Medicine.
“Tobacco-free alternative nicotine products are proven to be 95% less harmful than combustible cigarettes and the most effective method for smokers to quit their deadly habit.
“International evidence indicates that, if we want to significantly reduce smoking rates, we should adopt an excise system that reflects the relative risk model.
“Under this model, high-risk products like traditional combustible tobacco incur the higher tax rates, while less risky, tobacco-free nicotine products are taxed at a lower rate to encourage smokers to switch to these safer alternatives.
“The Bill, however, proposes the opposite and will dictate that smokers stick with the deadly option of cigarettes to satisfy their nicotine craving or seek out alternatives on the black market, exposing themselves to unregulated and potentially dangerous products.”
If the Bill is passed, e-cigarette devices will carry 40% excise duty, while a new tax structure for refills means a 164% tax increase will be imposed on a 100ml vape. The excise tax on nicotine pouches will more than double from KShs 1,200 per kg in the last budget to 2,500 per kg.
Dr Michael said: “Our own research at the University of Nairobi shows that Kenyans are choosing to use unregulated and potentially dangerous tobacco and traditional oral stimulants, despite the existence of less risky alternatives. An excise policy that encouraged the use of products that pose significantly reduced health risks to users would help to improve health and save lives.”
Dr Nick Mutisya said: “Modern tobacco-free nicotine products, like pouches and nicotine replacement therapies, expose users to lower levels of toxicants and are therefore comparatively less risky.”
Steven Umidha is a data and financial journalist with over 15 years of work experience in journalism and communication.
He specialises in finance and economics reporting as well as on the causes, impacts, and solutions of global warming, conservation, pollution and sustainability, often blending scientific literacy with journalist ethics, while involving policy analysis and multimedia storytelling across various platforms in highlighting issues from biodiversity loss to ecological justice.
He is the founder of Financial Fortune Media, and a Co-founder of One Planet Agency (OPA). He has previously worked with the Standard Media Group, Mediamax Networks LTD, bird story agency, Business Journal Africa, and Financial Post among other outlets.
He can be reached on: Email: info@financialfortunemedia.com
Office WhastApp: +(254)770-455-116