KRA denies reports on suspension of tax on non-alcoholic beverages

The Kenya Revenue Authority (KRA) has denied reports claiming that it has suspended taxes on bottled water, juices, soda and other non-alcoholic beverages.

The alleged suspension had been published in a local daily which claimed that a gazette notice that was reportedly set to impose excise stamps on the listed products had been suspended.

However, in a statement released Wednesday, KRA dismissed the article as “erroneous and misleading” sating that  no taxes had been suspended.

The taxman : “Taxes are imposed by law and become effective by way of statute. KRA has no mandate to defer implementation of the same.”

KRA, however, clarified that it had postponed implementation of the Excisable Goods Management System (EGMS).

“KRA postponed the implementation of Excisable Goods Management System (EGMS) which is a tool for accounting exercise production and traceability of excisable goods. This is not a tax,” said KRA.

The tax regulator also stated that EGMS postponement was to enable manufacturers complete installation of the system before a new go live date is communicated.

“Implementation of the EGMS system on production lines is ongoing at manufacturers’ premises and so far 91% of automated lines have been installed,” said KRA.

“The remaining constitutes of new production lines previously not mapped.”

Excise duty on bottled water, juices, soda and other non-alcoholic beverages will reportedly raise costs by between 50 cents and Ksh.2.80 per bottle.