The taxman believed the new system would help the government seal revenue loopholes and cub illicit trade in counterfeit goods.
The previous manual method of affixing Excise and Revenue Stamps on excisable goods was only limited to tobacco, wines, spirits and beer but experienced alleged rampant counterfeiting of stamps, resulting in manufacturers under-declaring volumes of their products, leading to under collection of excise tax.
READ ALSO: National Youth Service facing fresh probe over disappearance of KSh 10.5 billion However, Omtatah challengeed introduction and implementation of the new legal instrument (EGMS) on numerous grounds.
In his petition, he argued KRA and Treasury violated the Constitution, Statutory Instruments Act, the Fair Administrative Action Act, and Public Procurement Act and Parliament’s suspension of implementation by KRA of the EGMS.
The activist argued the standards and counterfeiting capabilities of EGMS was unnecessary since it duplicated the work of Kenya Bureau of Standards (Kebs) and the Anti-Counterfeit Agency.
He argued the decision to impose excise tax on bottled water, fruit juices and vegetable juices was contrary to Article 43 (1) (a), (c) and (d) of the Constitution.
The activist further argued the decision to have manufacturers and consumers bear the administrative and compliance costs associated with the implementation and operation of EGMS was unreasonable and contrary to Article 40 (2) and (3) of the Constitution.
He prayed that KRA, Treasury and SICPA be permanently prohibited from implementing the EGMS and that the public officers who approved use of public funds to procure the system from SICPA be held liable for any loss arising from its use.
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