Kutuny seeks to stop Sh4bn non-alcoholic drinks sin tax



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By LYNET IGADWAH
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The Kenya Revenue Authority (KRA) faces another barrier in its effort to collect Sh3.6 billion in excise tax on cosmetics, bottled water and other non-alcoholic drinks after Cherangany MP Joshua Kutuny Petitioned Parliament to Stop the Process.

The Taxman, Which in the Won a Protracted Case at the Court of Appeal, Plans to Roll Out its Excisable Goods Management System (EGMS) on August 1 pending determination of a case

Mr Kutuny, however, wants the National Assembly 's Public Investment Committee (PIC) to delay the taxes until a forensic audit and the Supreme Court case is concluded.

PIC is currently investigating the award of the Sh17 Excisable Goods Management Systems (EGMS) contract to Swiss firm SICPA Solutions.

Mr Kutuny, Secretary General of the United States of America. Constitution and would be a "mbadive rip-off of public resources".

"As a person elected to represent the interest of the people, I ask that the Treasury be put in place by the implementation of the EGMS until Parliament, through PICs concludes its investigations into the procurement of SCIPA to implement the EGMS, "he told reporters."

But in a quick join to Mr Kutuny's statement, SIPCA said the stamp price represents, at most, 2.7 per cent of the retail price

"KRA for soft drinks, juices and cosmetics are only Sh0.60 per stamp while that is bottled water is just Sh0. 50 and not Sh1.50 as claimed, "said SIPCA in a statement.

Previously, the taxman targeted large consumers such as supermarkets and hotel chains for enforcement of EGMS.

KRA and SICPA originally signed the e-tax contract in December 2012 to produce excise stamps for tobacco products, wines and spirits.

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