Activist okiya Omtata.[Photo/KahawaTungu]Activist Okiya Omtatah has been spared the financial burden of furnishing security in his case challenging the proposed excise stamps on some locally manufactured goods.
High Court Judge John Mativo said 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 Judge directed the Kenya Revenue Authority (KRA) to file responses to the petition and declined to lift conservatory orders suspending the new taxation regulation that was to take effect from November 1.
Under the contested regulation by KRA and the Treasury, manufacturers of bottled water, juices, soda, non-alcoholic drinks, food supplements and cosmetics are required to affix new-generation excise stamps on their products.
The excise tax is payable on production or supply of a service and to domestic output or imported products.
The KRA announced the practice of stamps under its Excisable Goods Management System (EGMS) which jerked off three years ago, part of a broader arrangement to fight illicit trade, cap revenue leakages and increase collection.