Consumers of bottled water should brace for price increase starting November 13 when the Kenya Revenue Authority starts implementing new excise taxes on the non-alcoholic beverage.
The price of bottled water is expected to increase by an average Sh7 per litre factoring in the excise duty of Sh5 per litre, VAT and the cost of the newly introduced EGMS stamp by Kenya Revenue Authority (KRA).
Speaking during a press conference to notify the public on the price changes, Water Bottlers Association of Kenya said the move will make bottled water unaffordable to the citizens.
“We want to tell the government that we are still opposed to water being charged excise duty because we know excise tax as sin tax and yet water is a basic human right. When you charge an excise tax on water up to Sh5.40 per every litre of water purified, you are simply making clean water unaffordable to the citizens!” said WBAK Organizing Secretary Simon Wanjohi.
The association also called on the relevant government agencies to upscale its surveillance programs to ensure a level playing ground for all businesses.
“We urge KRA to play its facilitation role and resolve any potential setbacks that would affect the conduct of our businesses. Our association comprises of genuine business people that are committed to doing the right thing in compliance with KEBS Standards. Also, our members uphold their citizenry duty of paying taxes to the government. In return, we just want the government to reduce or remove this exercise duty which will affect the pricing of bottled water” Added Henry Kabogo, WBAK Chairman.