Beers to Get Mandatory Excise Stamp by KRA

Kenya Revenue Authority has issued a directive where all packages of beer will have to be accompanied by a mandatory excise stamp fixed on them.

This directive will take effect from the 1st of February this year and will be compulsory for all beer brands, both locally brewed and international brands.

This move, according to the Kenya Revenue Authority, is aimed at sealing the revenue leaks that have been witnessed in the past leading to the taxman failing to attain his tax revenue goals.

A few weeks ago, Kenya Revenue Authority made a move in the implementation of tax compliance and conducted a raid on manufacturers who were operating without excise licences.

This comes after the Excise Duty Act 2015 took effect on 1st of December 2015. The excise duty among other things raised the prices of such goods as water, beer, used cars, as well as diesel.

An excise tax is an amount that is charged on production or on the supply of a service and to domestic output or imported products such as beer. This excise duty, despite the fact that it is paid by the manufacturer or the producer, the cost is often distributed to the consumer as the prices are often pushed up to cater for the costs. These products include beer, opaque beer, potable spirits, tobacco, juices, polythene bags, juices and sodas.

Last year, the Kenya Revenue Authority came under pressure from the government when it failed to meet its tax target.

This coupled with corruption claims touching on some officers led to President Uhuru Kenyatta to order for a life audit of all the officers at the KRA.

The government has also been under pressure from some quarters to try and reduce the prices of some basic commodities that pushed the inflation up.

Article by Juma Fred.