Leading alcohol manufacturer responds to government’s tax proposals

dennis kibet

March 31, 2017 12:33 PM

On Thursday, National Treasury Cabinet Secretary Henry Rotich introduced new tax proposals significantly touching on the Alcoholic beverage industry.

Africa Spirits Limited has said it has welcomed the new tax proposals saying some of them will provide a good foundation to curb the sale of counterfeit alcoholic products.

One of the country’s largest alcoholic beverages manufacturer has responded to Thursday’s tax proposals by the National Treasury Cabinet Secretary Henry Rotich, in his Budget Statement.

Africa Spirits Limited has said it has welcomed the new tax proposals saying some of them will provide a good foundation to curb the sale of counterfeit alcoholic products.

“The firm notes that some of the Tax proposals will provide a good foundation to curb the sale of counterfeit alcoholic products,” the company said in a statement.

In his 2017/2018 Budget Speech, CS Rotich said the alcoholic beverage manufacturers will enjoy a graduated excise management goods tax rate; ranging from Ksh. 0.50 to Ksh. 2.5 depending on the cost of the product.

Previously, the Excisable Goods Management System (EGMS) has been applying a uniform cost of stamps irrespective of the cost of the product.

In his address, Rotich noted that; “The uniform charge for the stamps has brought challenges in respect of low cost products.”

He added that, “In order to enhance tax administration, regulations that provide for differentiated prices based on the cost of the product will be gazetted shortly.

Accordingly, the cost of stamps now ranges from Ksh. 0.50 to Ksh. 2.5 depending on the cost of the product,” the CS said.

Illicit liquor

Speaking when he expressed the firm’s viewpoint on the Budget Statement, ASL Managing Director, Mr. Chris Lucas said the EGMS system when properly implemented would be a big win towards the fight against counterfeits and illicit liquor.

“The new security features on the new stamps that come with the EGMS system will make it easier for the Kenyan consumers to identify and choose safe alcoholic beverages. The eradication of the illicit and counterfeits drinks will also have a ripple effect on revenue generation for the government,” he said.

Africa Spirits and other industry players, Lucas said will continue to work closely with the KRA among other agencies to enhance the integrity of the products in the market.

dennis kibet