The kenya association manufactures Phyllis wakiaga. [photo /business daily.]
The Kenya association of manufacturers have asked the government to give them more time in order to effect the Excisable Goods Management System (EGMS) on the beverage products as required by the law.
Kenya revenue authority (KRA) issued November 1 as the deadline for all companies to affix new generation excise stamps on water, juices, soda, other non-alcoholic beverages, food supplements and cosmetics.
“There have been regular meetings. The matters raised have been on issues such as extra administration resources needed to implement the system; that some already installed machinery in factories which is not compatible with the system and therefore more time is needed for compatibility,” said Kenya Association of Manufacturers (KAM) chief executive Phyllis Wakiaga during an interview.
The taxman introduced the stamps three years ago as a plan to target the illicit trade, seal the revenue leakages and also improve revenue collection by Ksh 3.6 billion annually.
The manufacturers affected by the order were asked earlier this month by KRA Commissioner for Domestic Taxes Benson Korongo to facilitate KRA's technical to enable the access production lines for purpose of determining installation process.
“In order to ensure compliance, licensed manufacturers and registered importers of the affected products are advised to facilitate KRA’s technical teams to access the production lines for purposes of determining installation requirements,” said Korogo.