Auditor differs with taxman on levies

Auditor General Edward Ouko when he appeared before the Senate Assembly Public Accounts Committee over budget at Parliament on Wednesday 31/01/18. [Photo: Boniface Okendo, Standard]

The Auditor General has opposed plans by the taxman to collect Sh3.6 billion in excise tax on cosmetics, bottled water and non-alcoholic drinks.

In a special report, Auditor General Edward Ouko (pictured) said the Kenya Revenue Authority (KRA) did not involve the public or the National Assembly before reaching a decision to implement its Excisable Goods Management System (EGMS).

The report was presented to the National Assembly’s Public Investment Committee yesterday, a day after KRA announced a postponement of the launch of the system, previously scheduled to commence yesterday. In a joint press statement, KRA and Water Bottlers Association said they would communicate the new implementation date after concluding activities jointly agreed with stakeholders.

The implementation of EGMS on bottled water and juice has been the subject of a court case and parliamentary debate. On Thursday, Speaker Justin Muturi ruled that effecting the new system before its regulations were approved by the House was illegal

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