The Kenya Revenue Authority (KRA) has suffered another setback in its plans to tax plastic bottles used to package non-alcoholic drinks after the Tax Appeal Tribunal (TAT) ruled that duty paid on the tubes used to make the bottles should be refunded.
Ruling on a dispute between KRA and Kenafric Industries, the tribunal said the packaging bottles imported by the consumer goods company were raw materials and the Sh10,284,385.59 excise duty paid on them should be credited against the total tax payable on the final product.
