Excise duty

There was a 40.7% increase in excise taxes collected by banks in 2018 as compared to the prior year. This is in tandem with the overall increase of excise taxes collected by KRA from the financial services sector of 37.2%. This corresponds to the rising prominence of excisable non-funded income as reflected by a 2% rise in fees and commissions charged by the banking industry[1]. In addition, in 2018, the excise duty rate for non-funded income increased from 10% to 20%. This also contributed to the high growth in excise duties collected. In 2017 and 2018, the banking sector collected 43% and 44% of the total excise taxes collected in the financial services sector.