Court temporarily stops KRA decision to introduce excise duty stamps through the EGMS

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High court has temporarily stopped Kenya Revenue Authority (KRA) decision to introduce excise duty stamps through the Excise Goods Management System (EGMS) for nonalcoholic beverages, food supplements and cosmetics.
In a notice in the dailies, KRA had indicated that from 1st November, all juice, bottled water, plastic bottled sodas, food supplements, energy drinks and cosmetics manufactures and importers will need to have the excise duty stickers on their products.
In an application filed under a certificate of urgency by activist Okiya Omtata, he argues that the above public notice is in contemptuous disregard of the express directions the Public Investments Committee (PIC) of the 11th Parliament issued in October 2016 suspending the implementation of the EGMS by the respondents pending the conclusion of investigations the National Assembly

was conducting in the same following a petition filed in June 2016 by the Kenya
Association of manufacturers.
He further posits that although the introduction of this EGMS is supposed to seal revenue loopholes and identify counterfeit products, the reality is that
implementing it fully will come at a steep cost to manufacturers of the excisable
products. There are two costs- one is modifying existing production equipment to be compatible with the EGMS and, two, is the stamp price of Sh1.50 for every unit
produced.
In the matter, Omtata is seeking an order

Compelling the respondents not to implement the Excisable Goods Management System until and unless directed otherwise by Parliament.
He is also seeking an order quashing Legal Notice No. 110 of 18th June 2013 and Gazette Notice No. 12856 of 5th September 2013, for being invalid, null and void.
The activist wants the court to declare that the respondents have threatened and violated the Constitution of

Kenya 2010, the Statutory Instruments Act 2013, the Fair Administrative
Action Act 2015, and the Public Procurement and Disposal Act 2005.
In addition, he also wants a declaration that Parliament’s suspension of the implementation of the

EGMS by the respondents is valid and stays in force until further directions by the National Assembly and that the

Legal Notice No. 110 of 18th June 2013 and Gazette Notice No. 12856 of 5th September 2013 are invalid, null and void and of no legal effect.