NAIROBI, Kenya, Mar 31 – Africa Spirits Limited (ASL) has welcomed the tax proposals recently outlined by the National Treasury Cabinet Secretary Henry Rotich, in his Budget Statement.
The firm, which is the second biggest spirits maker by market share, notes that some of the Tax proposals will provide a good foundation to curb the sale of counterfeit alcoholic products.
In the 2017/2018 Budget Speech, delivered by the National Treasury Cabinet Secretary Henry Rotich, Alcoholic beverage manufacturers will now enjoy a graduated excise management goods tax rate; ranging from Sh0.50 to Sh2.5 depending on the cost of the product.
Previously, the Excisable Goods Management System (EGMS) has been applying a uniform cost of stamps irrespective of the cost of the product.
“The uniform charge for the stamps has brought challenges in respect of low-cost products.” He added.
“In order to enhance tax administration, regulations that provide for differentiated prices based on the cost of the product will be gazetted shortly.”
ASL Managing Director, Chris Lucas said the EGMS system, when properly implemented, would be a big win towards the fight against counterfeits and illicit liquor.
“The new security features on the new stamps that come with the EGMS system will make it easier for the Kenyan consumers to identify and choose safe alcoholic beverages. The eradication of the illicit and counterfeits drinks will also have a ripple effect on revenue generation for the government,” he said.
Africa Spirits and other industry players, Lucas said will continue to work closely with the KRA among other agencies to enhance the integrity of the products in the market.
“Our manufacturing process is centered on innovation. We use an advanced nonrefillable capping system for our range of products. Such tamper-proof nonrefillable capping systems provide much-needed quality assurance to the consumers guarding against product adulteration,” Lucas noted.
The company recently moved its operations to a new state of the art facility in Thika.
The bottling plant produces a variety of alcoholic beverages such as Bluemoon Vodka, Bluemoon flavors (apple, mango & Ginger), Legend Gold Brandy, Legend Black, Furaha Brandy, Furaha Gin and Gypsy King Gin.