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Kenyan alcoholic drink distributors have accused the Kenya Revenue Authority (KRA) of wrongly adjusting excise duty rates on about 30 products upwards violating a court order suspending implementation. The distributors told High Court judge Anthony Mrima that the authority had started implementing the new rates contained in a December 2021 legal notice against the court order.
Kenyan alcoholic drink distributors have accused the Kenya Revenue Authority (KRA) of wrongly adjusting excise duty rates on about 30 products upwards violating a court order suspending implementation. The distributors told High Court judge Anthony Mrima that the authority had started implementing the new rates contained in a December 2021 legal notice against the court order.
The KRA had on November 2 raised the duty charged on the products, including bottled water, juice, motorcycles, and beer, by 4.97 percent to cover the inflationary erosion of collected taxes. Aggrieved by this, the alcoholic drink distributors approached the court. A court ruling stopped the KRA from implementing the new excise rate.
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The respondents’ plea is that KRA adjusted the inflation rates of the excise duty despite the subsistence of the court order issued on December 15, 2021, thereby forcing the applicant’s members and other taxpayers to pay improperly adjusted rates. Pubs, Entertainment & Restaurants Association of Kenya (Perak), Mwaura Kabata, and the Kenya Human rights Commission, among others, obtained orders restraining the KRA from implementing the new rates
