Soda in plastic is among products to be slapped with duty. [backhresa.com]
The Kenya Revenue Authority has said it will introduce Exercise Stamps on bottled water, juices, soda sold in plastic bottles, energy drinks, other non-alcoholic beverages, food supplements and cosmetics.
“With effect from November 1, 2017, all the affected goods manufactured or imported into Kenya shall be affixed with exercise stamps in accordance with the regulations. We also invite manufacturers and importers for follow up consultation on October 12 in Nairobi,” the notice read.
Karimi said non-alcoholic beverages like Delmonte are not commonly consumed by ordinary Kenyans.
“Imposing further tax on them will make them unaffordable and will affect manufacturers who will realise little profit,” she said.
Water from Uganda is cheaper than our own, thus commonly consumed at the Kenyan border towns of Busia and Malaba. If tax is imposed on Kenyan water which is already expensive it will lead to loss of revenue. KRA needs to rethink its move of imposing tax on goods preferred by common Kenyans,” she said.
Former Kenya Private Schools Busia Chapter Executive Secretary Michael Ikolak said instead of imposing tax on the listed items, KRA should streamline the tax systems and seal tax evasion loopholes since Kenyans are already overburdened.
Ikolak said attempts to tax the goods will change the border community's consumption pattern.
“This will make them cross to Uganda to purchase the items there, thus making our business community lose out of business,” he said.
Frank Matt Supermarket manager Nicodemus Ikoche said they will monitor the listed items when they make their new orders to ensure that manufacturers or importers have met the conditions set by KRA.
“We shall not accept any goods without excise stamps on them. Our only appeal is for KRA to give us time to clear our old stock.”