The Kenya Revenue Authority (KRA) on July 4 rescheduled the rollout of Excise Stamps for Cosmetics and Beauty Products set to commence on July 1.
In a statement, the authority explained that the decision was reached after a discussion with manufacturers, importers, and other stakeholders.
"Following the engagements, KRA received a number of requests to reschedule the roll-out date, to allow for adequate preparation by the manufacturers and importers and to address issues that were raised during the stakeholder engagements," read part of the statement.
In the Excise Duty (Excisable Goods Management System- EGMS) (Amendment) Regulations, 2023, the authority had proposed a 316 per cent increase in excise stamp charges for beauty and cosmetic products, from Ksh0.6 to Ksh2.5 per stamp.
According to the statement, KRA notified all manufacturers, importers, and other stakeholders that the specific rollout date will be communicated at an appropriate time.
On May 3, KRA invited all stakeholders to actively participate in a discussion aimed at ensuring the seamless implementation of the excise stamp.
All manufacturers of cosmetics and beauty products who had installed automated product lines were requested to contact KRA to facilitate a technical site visit to confirm that their automated lines meet the requirements for installation of Excisable Goods Management System (EGMS) equipment.
Beauty and cosmetic products were among the various goods the government sought to increase the excise stamps.
A letter from the National Treasury and Economic Planning in January 2023 indicated that some goods set for increased excise stamps were cigars, wines, and fruit juices.
The announcement led to a court battle with the Law Society of Kenya (LSK) petitioning the High Court to stop the authority from implementing the increase.
However, in March 2023, the High Court dismissed the petition.
Additionally, the chairperson of the Kenya Associaton of Manufacturer's Cosmetics and Hygiene sub-sector Gacheri Mugao, lamented that the proposals, if implemented, would overburden manufacturers and consumers.
Kenya's beauty industry is among the fastest growing in the country, valued at Ksh100 billion.
