Kenya Breweries wins suit against KRA in cider tax dispute

Kenya Breweries Limited’s beer canning line at the Ruaraka plant in Nairobi. FILE PHOTO | NMG

Kenya Breweries Ltd has won a battle against the Kenya Revenue Authority over the taxman’s bid to classify fermented apple fruit concentrate, a raw material used in the manufacture of cider as an alcoholic beverage.

High Court judge David Majanja upheld a decision of the Tax Appeals Tribunal that found the apple concentrate, which is used in the manufacture of KBL’s Tusker Cider, cannot be classified in the same category as beverages, spirits and vinegar, to attract higher import duty.

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Note: The results are not exact but very close to the actual.