Orders stopping excise duty on non-alcoholic beverages extended

Orders stopping excise duty on non-alcoholic beverages extended

- in Business, News

The High Court has extended orders stopping the Kenya Revenue Authority (KRA) from imposing excise duty on bottled water, juices, soda, other non-alcoholic beverages and cosmetics.

Justice John Mativo when declining to lift the conservatory orders as sought by the taxman ruled that KRA failed to demonstrate justifiable grounds to warrant a reversal of orders.

The suspended new taxation regulation was to take effect from November 1 this year.

Justice Mativo ruled that public interest litigation was meant to enforce constitutional rights and a requirement for security of costs would create an unnecessary barrier to aggrieved citizens.

The case will be heard on January 31, next year.

In the case activist Okiya Omtatah is challenging the KRA decision, communicated in legal notices published on June 18 and September 5, 2013, creating the Excisable Goods Management System (EGMS) without public participation and sanction by the National Assembly.

In a notice in September, KRA had indicated that all juice, bottled water, plastic bottled sodas, food supplements, energy drinks and cosmetics manufactures and importers will need to have the excise duty stickers on their products.

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