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· Kioo Company Ltd has taken the Kenya Revenue Authority to the East African Court of Justice disputing the excise duty imposed on imported glass
· Kenya recently amended Kenya Excise Duty Act 2015 and introduced25 per cent excise duty on imported glass
Tanzanian glass manufacturer Kioo Company Ltd has taken the Kenya Revenue Authority to the East African Court of Justice disputing the excise duty imposed on imported glass. Kenya recently enacted the Business Laws (Amendment) Act 2020, which amended the Kenya Excise Duty Act 2015 and introduced25 per cent excise duty on imported glass from March 18, 2020. The company alleges that the introduction of excise duty, excluding glass bottles for packaging pharmaceutical products, is a breach of the Customs protocol. Further, it adds that “preferential treatment of domestic products vis-à-vis similar products originating from other EAC Partner States” violates the EAC Customs Union. The company said that as per the EAC Common External Tariff (CET), its imported inputs should have ordinarily attracted zero per cent or 10 per cent duty.
Kioo is one of the leading manufacturers of container glass used for soft drinks, beer, alcohol, and food in East and Central Africa. More than 60 per cent of its products are exported outside Tanzania, after meeting its domestic requirement. The introduction of the new duty reportedly will make it’s business uncompetitive and likely to render more than 600 workers at Kioo jobless.
