Parliament Suspends Implementation of EGMS

By Virginia Nyambura

Parliament’s recent decision recommending suspension of the Excisable Goods Management System (EGMS) has raised the need for more consultations among stakeholders regarding implementation of the system in Kenya.

In a statement sent to Newsrooms, Kenya Association of Manufacturers (KAM) stated that its members are not against the EGMS system adding that manufacturers were willing to be accountable in paying their taxes.

The statement read that KAM’s objectives were in line with the implementation of any system.

KAM stated that the main aim of the system was to ensure traceability and to fight illegal trade adding that the possibility and methodology of the proposed solution and process is a problem and threatens to stop them from their goal of curbing illegal trade.

The manufacturer’s body wrote that the EGMS system would have negative consequences on the industry since it would raise operational costs and capital expenses hence increasing the cost of doing business which results to raising the cost of living for Kenyans.

Parliament, in its decision yesterday, gave the stakeholders time to deliberate and agree on a more cost-effective solution that would enable them to achieve the set objectives in fighting illegal trade.

The Manufacturer’s body proceeded to request Kenya Revenue Authority (KRA) to delay the implementation of the EGMS until the alternative solutions had been agreed on.

KAM appreciated Parliament’s role in the discussion adding that the foreseen serious consequences had been deliberated and put on consideration.