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The government will not refund any taxes on beers and cigarettes collected by the revenue authority since June last year, even if Parliament fails to ratify tax measures in the pending Finance Bill 2011.
New taxation measures announced by the then Finance minister, Mr Uhuru Kenyatta, increased levies on some goods.
“The contemplation that treasury will refund any taxes is purely academic. There is no mechanism for ensuring that the tax-refund will reach the consumers who paid for the commodities,” said ministry of Finance communications officer, Mr Munyori Buku.
Still collecting levies
Speaking to the Daily Nation on phone, Mr Buku said that treasury had held several meetings with the House budget committee and the finance committee of Parliament over the stalemate surrounding the Finance Bill 2011.
An official from the Kenya Revenue Authority, speaking on condition of anonymity, said that the state agency is still collecting taxes under the new tariffs — as outlined in the Finance Bill 2011 — since they are yet to receive directives from treasury urging against such.
The provisions in the Bill saw beer prices surge upwards by between Sh10 and Sh20 per bottle, while those of cigarettes increased by between Sh10 and 20 per 10-stick packet. MPs didn’t meet the December 31, 2011 date to pass new tax measures.
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