The Kenya Revenue Authority (KRA) has dispelled reports that they had suspended taxes on bottled water, juices, soda and any other non-alcoholic beverages as earlier reported in sections of the media.
In a press statement published on the dailies, KRA says that that they were misquoted, saying that they only postponed the implementation of of Excisable Goods Management System (EGMS).
“KRA postponed the implementation of Excisable Goods Management System which is a tool for accounting for excise production and traceability of excisable goods. This is not a tax. Taxes are imposed by law and become effective by way of statute. KRA has no mandate to defer implementation of the same,” noted KRA.
KRA says the postponement was to enable manufacturers to complete installation of the system before a new go live date is announced.
According to the taxman, EGMS system on production lines is ongoing at manufacturers premises and so far 91 percent of automated lines have been installed.
“The remaining constitutes of production lines previously not mapped,” added KRA.
In June, the Treasury announced that he listed goods, whether imported or manufactured locally, were to be affixed with excise stamps as from Saturday, September 1.
Upon implementation, the cost of the goods will go up by between 50 cents and Ksh2.80 per bottle.