In Summary
  • KRA targets raising Sh3.6 billion from additional excise stamps taxes.

The Kenya Revenue Authority (KRA) is preparing to raid drinking water and other beverages from September in an effort to raise an additional Sh3.6 billion from excise tax following introduction of additional excise stamps.

The roll-out of Excisable Goods Management System (EGMS) will see manufacturers from September 1 required to affix the new generation excise stamps on bottled water, juices, soda, energy drinks, non-alcoholic beverages, food supplements and cosmetics.

The move comes as the taxman, who has perennially missed tax targets, moves to seal revenue leaks against the backdrop of ever higher collection targets set by the Treasury.

Past attempts by the KRA to roll out the system have failed after its implementation was opposed in court.

On Tuesday, KRA said it is engaging manufacturers for a smooth roll-out of the system.

“KRA notifies the public of the go live of the excisable management system on bottled water, juices, soda and other non-alcoholic beverages and cosmetics effective September 1, 2019 as stipulated by Section 28 of the Excise Act, 2015 and the Legal notice 53 of the March 2017,” said KRA commissioner for domestic taxes Elizabeth Odundo Meyo in a notice.

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