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MPs send away KRA boss John Njiraini over 'unacceptable' responses on tax system

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Mr John Njiraini, KRA commissioner-general. PHOTO | FILE

MPs have sent away the Kenya Revenue Authority Commissioner-General John Njiraini after failing to table documents on the procurement of Sh17 billion e-tax stamps.

Mr Njiraini irked the Public Investments Committee (PIC) when he said the case on the implementation of the Excisable Goods Management System (EGMS) is in court.

“Your responses are unacceptable and you cannot hide behind court to avoid answering our questions. I therefore rule that this has been a waste of taxpayers’ money and therefore this matter cannot proceed.

"These proceedings stand adjourned and you are dismissed,” Abdulswamad Nassir, the PIC chairman ruled.

Mr Njiraini said he will provide documents showing that the EGMS matter is in court but the committee directed him to table all documents by close of business next Wednesday.

'Not signed'

“Your response is unacceptable because it has not been signed. We want necessary signatures to accompany certified copies,” Mr Nassir said.

Mr Njiraini had been summoned to answer questions raised by Auditor-General Edward Ouko on the special audit report on the procurement of the EGMS system that KRA awarded a Swiss firm, SICPA, SA through single-sourcing.

The High Court two weeks ago quashed the tender and declared the planned levying of excise duty on bottled water, juices, soda, other non-alcoholic beverages and cosmetics unconstitutional, offering consumers relief from a price increment.

The court found that the KRA and the National Treasury had not complied with the requirement of public participation and did not involve stakeholders before rolling out the tax.

The taxman was expected to collect at least Sh3.6 billion in revenue from the tax annually.

KRA was to roll out the new tax, which required manufacturers and importers to affix the new generation excise stamps on bottled water, juices, soda, energy drinks, other non-alcoholic beverages, food supplements and cosmetics from November 1.