KRA argued that the non-payment of VAT by the drug manufacturer was a deliberate ploy to evade payment of tax. Universal filed the case after KRA wrote a demand letter in November 28, 2013 claiming Sh427 Million unpaid Value Added Tax (VAT) for the period January 2008-November 2013. Updated Wed, June 22nd 2016 at 16:07 GMT +3NAKURU, KENYA: Pharmaceutical manufacturer, Universal Corporation Limited has won a reprieve after the High Court quashed Sh427 Million tax demand from Kenya Revenue Authority (KRA). Despite the government policy facilitating production of cheap medicines the Court noted that the minister of Finance had not translated the policy into law. The audit on import statistical data also revealed that the drug manufacturer was importing raw materials for manufacture of medicaments and wrongly lodging them into the Simba System.

Source: Standard Digital June 22, 2016 13:07 UTC