This archive report was first published on 11 November 2019.
Kenya Revenue Authority (KRA) has launched a new system to increase revenue collection from non-alcoholic beverage manufacturers. The Excisable Goods Management System (EGMS) will be rolled out starting Wednesday, November 13, 2019.
According to KRA Commissioner for Domestic Taxes, Elizabeth Meyo, the implementation of the system will increase revenue collection by approximately Ksh4 billion.
The system will also enable fair competition amongst traders in the sector, with Meyo stating that currently, up to 78% of companies in the water sector are not paying their fair share of taxes.
“This is not fair to the 22% who are compliant. The system will, therefore, enable KRA to monitor and ensure that all traders within the sector are compliant,” Meyo said.
Over 450 companies will be affected by the rollout, with 64 production lines automated and the rest manual. The rollout of EGMS on the automated line will be concluded before the go-live date.
Already, 57 out of the 64 lines have been installed with an alternative secure system provided for manual lines. Only licensed manufacturers and licensed importers of Excisable goods in accordance with Section 15 of the Excise Duty Act 2015 will be able to obtain Excise Stamps.
During the implementation period, KRA will work closely with other relevant agencies, including the Competition Authority, to ensure that consumers are protected from the predatory increase of prices.
EGMS was first rolled out in 2013 on alcohol and cigarettes, and since then, the system has enabled KRA to raise Ksh 5.6 billion monthly.
For this rollout, products manufactured or imported into Kenya prior to the go-live date will be allowed in the market up to January 31, 2020.
