KRA trains eyes on bottled water, juice, cosmetics in excise duty drive
Manufacturers of non-alcoholic beverages, food supplements and cosmetics will be required to affix excise duty stamps on their products as the taxman rolls out a system to enhance tax compliance.
In a notice in the dailies, the Kenya Revenue Authority (KRA) has indicated that from November 1, all juice, bottled water, plastic bottled sodas, food supplements, energy drinks and cosmetics manufactures and importers will need to have the excise duty stickers on their products.
The move is seen as a response from the growing number of water and juice manufactures, with KRA keen to ensure they all pay requisite taxes.
Currently an estimated 186 bottled water manufacturers and 28 soft drinks and juices manufacturers licensed by the authority pay tax.
The move will also see cosmetics makers and importers subjected to the same rule with KRA keen to increase revenue collection.
“With effect from 1st November 2017, all the affected goods manufactured and imported into Kenya shall be affixed with excise stamps in accordance with the regulations,” KRA said.
The stamp will deter counterfeiting, facilitate tracking of the stamps and excisable goods, and enable accounting for the production of excisable manufactured or imported goods.
KRA has been using the excisable goods management system since 2013, and generates an estimated Sh722.8 million a year from tobacco, spirits and wines.
The system ideally tracks revenues from registered manufactures and importers and ensures revenues tally goods sold.
Te proliferation of bottled water and juices has seen a number of traders fail to remit taxes from sold items.
Manufacturers and importers have until October 19 to submit all details of brands they sell and register for the excise stamps on the excisable goods management system.
Last month KRA issued a similar directive targeting manufacturers and importers dealing with electronic cigarettes and cartridges, cigars, chewing tobacco, sheesha, cigarillos as well as any tobacco substitute to apply for excise stamps to affix on their products.
Under the directive, retailers and restaurants will also display health warnings of the products.
For Citizen TV updates
Join @citizentvke Telegram channel
Video Of The Day: CBK\'s guidelines on how to return 1000 notes