There will be no more taxation levied on bottled water, soda, juices and other beverages following a High Court decision terming the move unconstitutional.
The government, through the National Treasury, was set to start taxing juices, soda, bottled water, other beverages as well as cosmetics in a move that would see the consumer bear the burden of footing the costs.
The court found out that the Kenya Revenue Authority had not complied with the requirement for the public to participate and also failed to involve the stakeholders in the matter before implementation.
KRA had already issued a tender for the supply of systems that would be used in the collection of the said tax. The High Court in its ruling has quashed the tender.
The ruling comes as a great setback to the revenue collector who has been falling short of meeting tax collection targets.
Early this month, the Cabinet Secretary for Treasury, Henry Rotich, blamed KRA for the financial woes facing the government saying that KRA had failed to collect enough tax in 2017.
If the new levy on water, soda, juice, and other beverages had sailed through, KRA would have been collecting at least 3.5 billion shillings annually.
The case had been filed by Activist Okiya Omtata who questioned the legality of the decision.