Price of water and soda set to rise

The Kenya Revenue Authority has finally announced plans to lob non-alcoholic beverages, food supplements and cosmetics into its excise duty regime as the taxman seeks to expand its revenue base to plug collection shortfalls.

Beginning November 1, taxpayers will be obliged to dig deeper into their pockets as the prices of all juice, bottled water, plastic bottled sodas, food supplements, energy drinks and cosmetics are set to be hiked as manufactures and importers seek to recoup the newly-introduced tax expenses. The would all be required to affix excise duty stickers on their products.

According to Citizen Digital, currently an estimated 186 bottled water manufacturers and 28 soft drinks and juices manufacturers licensed by the authority pay tax.

The move will also see cosmetics makers and importers subjected to the same rule with KRA keen to increase revenue collection.

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“With effect from 1st November 2017, all the affected goods manufactured and imported into Kenya shall be affixed with excise stamps in accordance with the regulations,” KRA said.

The stamp will deter counterfeiting, facilitate tracking of the stamps and excisable goods, and enable accounting for the production of excisable manufactured or imported goods.

KRA has been using the excisable goods management system since 2013, and generates an estimated Ksh 722.8 million a year from tobacco, spirits and wines.

 The system ideally tracks revenues from registered manufactures and importers and ensures revenues tally goods sold.
 ALSO SEE: KRA misses revenue target by Sh50 billion

Te proliferation of bottled water and juices has seen a number of traders fail to remit taxes from sold items.

Manufacturers and importers have until October 19 to submit all details of brands they sell and register for the excise stamps on the excisable goods management system.

Last month KRA issued a similar directive targeting manufacturers and importers dealing with electronic cigarettes and cartridges, cigars, chewing tobacco, sheesha, cigarillos as well as any tobacco substitute to apply for excise stamps to affix on their products.

Under the directive, retailers and restaurants will also display health warnings of the products. KRA has mulled plans to tax non-alcoholic products as early as March this year.

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