KRA Sends Notice to Some Manufacturers After Removal of Excise Tax

Jukwaa

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In a notice to manufacturers on Monday, July 7, KRA confirmed the removal of excise duties on bottled water, offering relief to manufacturers and importers.

However, the authority maintained that licensed manufacturers have the obligation to file returns for June, as the tax exemption only took effect on July 1, 2026, under the Finance Act, 2026.

"Kenya Revenue Authority notifies all licensed manufacturers and importers of bottled water and the general public that pursuant to the Finance Act, 2026 (amending the First Schedule to the Excise Duty Act, Cap 472), excise duty on bottled water is removed with effect from July 1, 2026," KRA stated.

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"Manufacturers are reminded of their obligation to submit their Excise Duty Returns for the month of June 2026 and pay the taxes due by July 20, 2026," it added.

According to the authority, excise duty on bottled water was abolished with effect from July 1, meaning bottled water manufactured or imported from that date will no longer attract excise duty or require excise stamps.

"Bottled water manufactured or imported on or after this date will not be subject to excise duty and will not be required to be affixed with excise stamps," it added.

While manufacturers will no longer be required to pay excise duty on bottled water produced or imported from July 1 onwards, KRA emphasized that all outstanding tax obligations for the period before the exemption remain payable.

The authority urged affected manufacturers to compl y with the filing deadline to avoid penalties and ensure a smooth transition to the new excise duty framework.

At the same time, KRA will require the manufacturers to return unused excise stamps and decompose digital stamps, stating that it will issue guidelines on how that will be done and help manufacturers transition to the new regime.

📰 Source: Kenyans.co.ke

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