KRA ceased to apply an electronic tax system

Parliament yesterday banned the Kenya Revenue Authority from implementing the excise management system for soft drinks.

The Speaker of the National Assembly, Justin Muturi, said that the deployment of the new system would be illegal. 19659002] "No one, no body or authority has the power to enforce anything that has the force of law without pbading through Parliament," Muturi said

"if anything that has force of law is enforced without pbading through this House, It is void and if the regulations are published in the Gazette and are not tabled within seven days of publication in the House, it has no force "Muturi

," said Muturi

instructions on the implementation of the excise stamps on soft drinks that KRA was to deploy from August 1.

Kutuny, who had already appeared before the Public Investment Committee, had asked for suspension until the Auditor General concluded a judicial audit of the single supply system.

"Manufacturers are forced to install this expensive system at their own expense while it just takes a simple reconfiguration on the production lines to give the KRA what they want, "Kutuny said.

The EGMS e-tax service was provided by the Swiss company SICPA Security Solution Ltd Ltd. for a cost of Sh17.7 billion.

If the new system will not be suspended, it means that bottled water, juices, soft drinks, other non-alcoholic beverages and cosmetics imported or manufactured locally must be affixed with stamps. ; Excise.

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Rights stamps Excise, set up in 2013 and initially focused on tobacco products, wines and spirits, saw KRA expand its application to other alcoholic beverages, and now non-alcoholic and bottled beverages to rid the market for counterfeit products.

Kutuny said the average number of soft drink bottles that are being rolled out across all manufu manufacturers stands at an average of 30 million a day. SICPA will collect about 54 million shillings if the Sh1.5 duty is imposed.

"This means that in a month SICPA will hit 1.2 billion shillings and 16 billion Sh in a year.With a five-year contract, SICPA will reap 81 billion shillings in a tender initially Negotiated for 17 billion shillings .It is a monumental scam, "said Kuttuny

. PIC Chair Abduswamad Nbadir said the committee foresaw a danger if the EGMS was implemented. He said the committee will meet with KRA Director General John Njiraini and advise on suspending his deployment.

"This will be a warning just because Kutuny has raised important questions about his supply."

"Article 227 of the Constitution clearly states that any official who causes the loss of public funds will compensate for the loss," he said.

The Chairman of the Finance Committee and Member of Parliament for Kipkelion East, Joseph Limo, has the charges of electronic stamps were not brought to the attention of his committee

See: The Court suspends new taxes under the Finance Bill, 2018

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