Prices of sodas, bottled water and non-alcoholic beverages to go up
Prices of bottled water, juices, soda and non-alcoholic beverages and cosmetics are set to be increased from next month to accommodate Excise Tax, with the implementation of the Excisable Goods Management System (EGMS).
Kenya Revenue Authority (KRA) has informed all licensed manufacturers, importers, distributors retailers, and the general public that further to the public notice dated 30th August 2019 bottled water, juices, energy drinks, soda and other non-alcoholic beverages manufactured in or imported into Kenya from 13/11/2019 must be affixed with an Excise Stamp in accordance with Section 28 of Excise Duty Act 2015.
“Only licensed manufacturers and licensed importers of Excisable goods in accordance with the Excise Duty Act 2015 can obtain exercise stamps. All bottled water, juices, energy drinks, soda and other non-alcoholic beverages manufactured and imported into Kenya prior to the go-live date will be allowed to market without stamps until 31st January 2020,” KRA has said.
According to KRA, any products manufactured or imported on or after 13th November without bearing the stamp or those before 13th November found in the market after 31st January 2020, not bearing the excise stamp shall be seized and offenders prosecuted.
Excise duty on bottled water, juices, soda and other non-alcoholic beverages will reportedly raise costs by between 50 cents and Sh.2.80 per bottle.
In September, KRA denied reports that it had suspended taxes on bottled water, juices, soda and other non-alcoholic beverages.
The alleged suspension had been published in a local daily which claimed that a gazette notice that was reportedly set to impose excise stamps on the listed products had been suspended.
However, in a statement KRA dismissed the article as “erroneous and misleading” sating that no taxes had been suspended.
“Taxes are imposed by law and become effective by way of statute. KRA has no mandate to defer implementation of the same,” said KRA.