Water bottlers, consumers hit as court backs tax on refills

Water bottles

Water vendors had asked the court to declare that KRA’s decision to classify water refilling as manufacturing, subject to excise duty, unlawful.

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The High Court has struck out a petition by a group of traders seeking to quash the decision of the Kenya Revenue Authority (KRA) to impose an excise duty on water refilling businesses, which are primarily located near residential estates.

The court decision is likely to have implications on the cost of bottled water as traders pass on the extra cost to consumers.

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