Blow
Cherangany
Disqus
EGMS
House
JavaScript
Joshua Kutuny
Justin Muturi
Kenya Revenue Authority
KRA
Kutuny
Muturi
National Assembly
Parliament
Public Investments Committee
Securities Solutions
Sh4bn

Blow to KRA as House slams breaks on Sh4bn non-alcoholic drinks tax

National Assembly Speaker Justin Muturi ruled that effecting the new system without regulations being tabled and approved by the House is null and void. He said no person, body or authority has power to impose something that has the force of law without passing through Parliament. Mr Muturi made the order after Cherangany MP Joshua Kutuny sought directions on the impending implementation of the Sh17 billion Excisable Goods Management System (EGMS) that is set to go live on August 1.

Blow to KRA as House slams breaks on Sh4bn non-alcoholic drinks tax

Parliament has stopped the Kenya Revenue Authority (KRA) from implementing the controversial e-tax stamps system, effectively slamming the breaks on the authority’s effort to collect Sh3.6 billion on cosmetics, bottled water and other non-alcoholic drinks. National Assembly Speaker Justin Muturi ruled that effecting the new system without regulations being tabled and approved by the House is null and void.He said no person, body or authority has power to impose something that has the force of law without passing through Parliament. “If something that has force of law is being implemented without passing through this House, then it is null and void.“If the regulations are gazetted and not tabled within seven days of gazettment in the House, it has no force of law,” Mr Muturi said.

Mr Muturi made the order after Cherangany MP Joshua Kutuny sought directions on the impending implementation of the Sh17 billion Excisable Goods Management System (EGMS) that is set to go live on August 1.Mr Kutuny said KRA had discriminated against local manufacturers by forcing them to go live next Wednesday when multinational companies have been given a three-month grace period (to November) to implement the same.He also faulted the KRA award of the Sh17 billon EGMS contract to Swiss firm SICPA Securities Solutions through single sourcing or direct procurement.Mr Kutuny had earlier appeared before the Public Investments Committee, which launched investigations into a clause in the tender documents that requires manufacturers of excisable goods to pay the Swiss firm Sh1.50 for every stamp attached on an item.

Please enable JavaScript to view the comments powered by Disqus.

Share this Post

by

Search