A look at the New Tax Regulations - The Excise Duty Regulations 2016
Last week, we discussed the Value Added Tax Regulations, 2016 (L.I. 2243) which were made to bring clarity to the Value Added Tax Act, 2013 (Act 870).
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The third part in the series discusses the Excise Duty Regulations, 2016 (L.I. 2242).
In brief
The Excise Duty Act, 2014 (Act 878) provides for the imposition and collection of excise duty on selected imported and locally manufactured goods and for related matters.
The Excise Duty Regulations, 2016 (L.I. 2242) came into force on 3 August 2016 purposely to provide for the administration and carrying into effect the provisions of Act 878. This publication will highlight some key administrative issues provided for in L.I. 2242 (“the Regulation”).
In detail
Determination of Excise Duty payable
The excise duty payable on malt drinks, beer, stout, other than indigenous beer is determined by the percentage of local raw materials used. Local raw materials do not include water.
Upfront assessment of excise duties
The Commissioner –General (“C-G”) may assess upfront excise duties on imported ethyl and alcohol for payment at the point of importation.
Credits and Refunds
Under Act 878, a person who is due a refund, is required to make an application for it within 12 months after the month to with the refund relates.
The Regulation provides further guidance that an application for a refund should be made for each calendar month to which the refund claim relates.
Maintenance of Records
The Regulation makes it mandatory for registered manufacturers and importers to maintain accurate records in a form approved by the C-G that supports the determination of excise duty liabilities and preparation of excise duty returns.
Registered manufacturers and importers of excisable goods are required to maintain at a minimum, records that show evidence of the manufacture, storage, removal, delivery and any other information the C-G may request.
Excise Duty Returns
The Regulation provides for the following types of returns to be filed:
- a return for other packaging activities; and
- a return for production activities for the month.
Each of these returns have different information requirements and must be signed and dated to indicate that all particulars contained in the respective returns are true and accurate.