This archive report was first published on 30 October 2019.
Kenya Revenue Authority (KRA) has announced the implementation of the Excise Tax on bottled water, juices, soda, and other non-alcoholic beverages, effective from next month.
As of November 13, 2019, all manufacturers and importers of these products must affix an Excise Stamp in accordance with Section 28 of the Excise Duty Act 2015.
According to KRA, only licensed manufacturers and importers can obtain excise stamps, and products manufactured or imported before the go-live date will be allowed to market without stamps until January 31, 2020.
Any products manufactured or imported on or after November 13 without bearing the stamp or those before November 13 found in the market after January 31, 2020, not bearing the excise stamp shall be seized and offenders prosecuted.
The implementation of the Excise Tax is expected to raise costs by between 50 cents and Sh.2.80 per bottle.
It's worth noting that KRA had previously denied reports of suspending taxes on these products in September 2019, stating that no taxes had been suspended and that taxes are imposed by law and become effective by statute.
