KRA destroys illicit beverages worth KShs. 30 million

PRESS RELEASE 14/07/2022

The Kenya Revenue Authority (KRA) has destroyed non-complaint beverages seized from the market worth KShs. 30 million and KShs. 3.4 million in taxes.

The products, comprising of various brands of bottled water totalling 243,000 litres, were destroyed at Weeco Recycling Industry EPZ Limited facility in Athi River. The beverages were seized in various operations around the country and had no stamps or were affixed with counterfeit excise stamps. The goods were confiscated by the Multi Agency Team as part of commitment to phase out noncompliant products from the market in compliance with various legal statutes including the Excise Duty Act 2015 and Excisable Goods Management System Act Regulations (EGMS).

KRA has been conducting destruction of counterfeit goods as part of its commitment to the fight against illicit trade. Through these efforts KRA destroyed 560,000 bottled water of different brands worth KShs 23 million were destroyed on 20th April 2021 in Athi River, Machakos County. This was followed by another destruction of non-compliant goods worth KShs 43 million on 27th October 2021 at the Kenya Industrial Research and Development Institute (KIRDI) in Kisumu County.

Illicit trade has very serious implications that affect all the concerned players’ right from the manufactures conducting their business within the confines of the law to the unsuspecting consumers who might end up consuming potentially hazardous products. The implication on government revenue can also not be overstated hence KRA’s spirited effort combat illicit trade in the country.

KRA urges all licensed manufacturers, importers, distributors, retailers and general public that all bottled water beverages manufactured in or imported into Kenya from 13th November 2019 must be affixed with an Excise Stamp in compliance with the EGMS Regulations. Issuance of stamps is conditional upon manufacturers and importers filing all their tax returns and payment of assessed taxes.

Traders and general public are also notified that it is an offence to distribute, offer for sale or be in possession of any excisable goods manufactured or imported by unlicensed persons. The traders can access updated list of licensed manufacturers and importers of excisable goods is available on the KRA website.

KRA is committed to ensure that trade operations are only carried out by traders who abide by the laid down legislations and tax policies.

 

Commissioner, Domestic Taxes Department

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