Hundreds of companies face closure as Kenya Revenue Authority (KRA) plans to conduct a nationwide crackdown on unlicensed excisable goods manufacturers and importers.
This follows the release of an updated list of licensed manufacturers and importers of excisable goods. The new list, dated September 24th, 2015, features a total of 133 importers and 165 local manufacturers who have now complied with the new licensing requirements. The list is an update of a previous one earlier on 18th August 2015, which featured 62 importers and 114 local manufacturers.
KRA Domestic Taxes Commissioner Alice Owuor said stern action will be taken against retailers found to be stocking products sourced from unlicensed manufacturers and unregistered importers of excisable goods.
Such licensing applies to manufacturers and importers of beer, wine, bottled water, carbonated soft drinks (soda), juices, other non-alcoholic beverages and plastic bags. Manufacturers and importers dealing in cosmetics, polythene paper bags, ethyl alcohol, spirits & spirituous beverages, and tobacco are also subject to the licensed.
Manufacturers and importers, within KRA’s radar and not listed on the updated schedule have already received notifications to cease operations. The Authority, she said, will deploy its enforcement units including the Market Surveillance Office, to ensure full compliance with the relevant tax laws.
“At KRA, we have remained lenient and provided a platform for facilitation for all manufacturers and importers of excisable goods and we are now set to undertake the applicable enforcement actions to ensure full compliance,” Owuor said. “All wholesalers, retailers and other outlets including consumers are reminded to purchase or offer for sale excisable goods from the duly licensed manufacturers and registered importers only,” she added.
As per the law, any manufacturer or importer, not on the updated list of Licensed Manufactures and Registered Importers of Excisable Goods for the Year 2015, is operating illegally.
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