The Water Bottlers Association of Kenya (WBAK) has said the prices of bottled water will hike by about KSh10, with effect from 1st February 2020.
This unfolds after the association intends to begin passing down additional costs stemming from excise tax on non-alcoholic drinks. The price increase is also attributed to the rise in the excise duty of KSh5 per litre, VAT and the cost of the newly introduced Excisable Goods Management System (EGMS) stamp by Kenya Revenue Authority (KRA).
According to the Kenya Revenue Authority (KRA), the EGMS stamps seek to enhance compliance and boost revenue collection by approximately KSh4 billion. Additionally, the system will also enable fair competition amongst traders in the sector.
Food Business Africa reports that in 2013, KRA implemented the first EGM on alcoholic drinks and cigarettes. This, thus, increased excise tax from KSh700 million to the current KSh5.6 billion monthly.
Thus, WBAK hints that wholesalers buying from bottlers for resale will now purchase a case of 24 bottles, 500ml each, at between KSh480 and KSh500, up from KSh300 previously.
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