However, the new measure has increased operational cost for manufacturers, who now want the government to take up the burden. Additionally, some manufacturers have had to rework on their packaging to affix the stamps, which also incurred their operational costs. “Given that manufacturers are already paying excise tax, we propose that the cost of stamps and cost of implementing EGMS is borne by the government,” she added. The association has called on the service provider to avail a range of digital stamps ink colours to cater for both dark and bright coloured caps. With excise duty, stamp cost and VAT, the final price averages Sh410, where Sh160 goes to the government as excise and VAT.

Source: The Star April 14, 2020 00:56 UTC