Kenya Manufacturers Protest New KRA Fuel And Beer Tax Powers Given To KRA

Sunday, May 15, 2022-The Kenya Association of Manufacturers (KAM) wants the proposed powers to exempt excisable goods like fuel, beer and bottled water from annual price rise due to inflation to be taken away from the Kenya Revenue Authority (KRA) to the lawmakers, citing conflict of interest.

In a memorandum to the National Assembly, KAM argues the Public Finance Act gives Treasury secretary Ukur Yatani the power to waive taxes with no legal provision to transfer them to KRA Commissioner-General Githii Mburu.

The amendments to Excise Duty Act, through the Finance Bill 2022, empowers Mr. Mburu to exclude some products from annual inflation tax adjustment based on prevailing economic conditions.

“We propose that the power to exempt specific products from inflation adjustment be granted to the National Assembly instead [of KRA Commissioner-General],” KAM’s outgoing chief executive Phyllis Wakiaga wrote in the memorandum on the Finance Bill before the august House.

“There is a conflict of interest where the institution entrusted as the collector of national government revenue…is the same institution granted the powers of the CS National Treasury to waive or vary tax, fees or charges.”

The Political Eye