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Vendors have suffered a blow after the High Court declined to suspend excise duty levied on water refills.

Justice Anthony Mrima yesterday ruled it was in the public interest that taxes are paid to enable service providers to the populace.

The vendors had moved court and sued Kenya Revenue Authority over a notice requiring them to pay excise stamps on each bottle that has been refilled or packaged. 

The notice issued in 2020 read: “KRA wishes to remind all persons who are engaged in the business of bottling (including through refilling) or packaging water that they are required to obtain an excise license from KRA and also charge and remit excise duty as required by law.”

However, 34, vendors challenged the constitutionality of the impugned notice for the classification of water refilling businesses as manufacturing subject to taxation of excise duty.

They contended that if their application was not allowed, they would unlawfully be compelled to comply with the requirements of the Excise Duty Act and their businesses would be forced to close down.

KRA opposed the application, contending that the water refilling business was manufactured within the meaning of the Excise Duty Act and regulations made thereof.