Application of new excise duty on tap water splits tax experts

Tax experts have differed on whether the newly introduced excise duty should also be charged on tap water, given the ambiguity in the law that took effect in December last year.

The Excise Duty Act provides for a Sh10 per litre duty on “waters and other non-alcoholic beverages not including fruit or vegetable juices” without specifically mentioning bottled water which has divided tax experts.