EXCISE DUTY ON CONVERTED EXCISABLE GOODS

It has come to the knowledge of Kenya Revenue Authority that some manufacturers of excisable goods are not computing excise duty on converted excisable goods in accordance with the provisions of the law.

All manufacturers of converted excisable goods are required to comply with the requirements of section 117(1) d of the Customs & Excise Act Cap 472, which provides that duty on the converted goods shall be computed on the difference between the excise duty charged on the new product and duty originally paid. Consequently the manufacturers are required to charge excise duty on the new product at the rates specified in the 5th schedule and deduct excise duty originally paid on the inputs.

Excise duty returns that will not meet the legal requirements indicated above will not be accepted and appropriate legal penalties and sanctions shall be applied.

Commissioner
Domestic Taxes Department