Nairobi, Sept. 15 -- Prolonged closure of bars and night clubs has forced the Treasury to cut its excise tax projections by Sh45.8 billion, giving the government a fresh revenue collection headache three months since the start of the financial year.
Treasury Cabinet Secretary Ukur Yatani has lowered the excise duty target - the bulk of which come from sale of alcohol and cigarettes - to Sh195.6 billion from the Sh241.4 billion set in June despite a scheduled raise on the tax from October 1.
The Treasury has linked the cut to the effects of Covid-19 restrictions, including closure of bars and curbs on mass gathering. More than 30 products attract excise duty, including bottled water, fuel and juices. But alcohol and cigarettes, largely sol...