NAIROBI, KENYA: Taxman on Tuesday suspended indefinitely the implementation of Excisable Goods Management System (EGMS) on bottled water and juice that was to commence on 1st August 2018.
In a joint press statement sent to media houses, the by Kenya Revenue Authority (KRA) and Water Bottlers Association said they will communicate new implementation date after concluding activities jointly agreed with the stakeholders.
“We would like to inform manufacturers and importers of water and juice that it has been deferred the implementation of Excisable Goods Management System (EGMS) on bottled water and juice that was to commence on 1st August 2018 to a date to be announced later,” read the statement.
Signed by Karambu Muthaura, head of Licensing & EGMS Unit at KRA, the statement further said that the decision to postpone the go-live of EGMS on the products had been reached following extensive consultations with various stakeholders including Water Bottlers Association on Kenya (WBAK).
The implementation of the of EGMS on bottled water and juice has been a subject of both court case and parliamentary debate and on Thursday National Assembly Speaker Justin Muturi ruled that effecting the new system without regulations being tabled and approved by the House is null and void.
Muturi noted that no person, body or authority had power to impose something that has the force of law without passing through Parliament and the efforts by KRA to collect Sh3.6 billion on cosmetics, bottled water and other non-alcoholic drinks was an illegality.
“If something that has force of law is being implemented without passing through this House, then it is null and void. The regulations has no force of law if they are gazetted and tabled within seven days of gazettment in the House,” said the Speaker.
Muturi’s directives followed on Cherangany MP Joshua Kutuny question in the House as to why the Swiss firm SICPA Securities Solutions that was meant to implement the process was given the job through single sourcing or direct procurement.
KRA was targeting to raise Sh3.6 billion per year in revenue upon implementation of the EGMS on bottled water, soda, juice, and other non-alcoholic beverages and cosmetics.
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