Section 38

Penalty 

(1) A person who undertakes an activity referred to in section 15 (1) (a) or (b) without being licensed to do so shall be liable to a penalty equal to –

• (a) double the excise duty that would have been payable if the person were licensed or five million shillings, whichever is higher in the case of a person to whom section 15 (1) (a) applies; or Finance Act, 2018 Effective 1st July 2018 
• (b)double the amount of excise duty payable or five million shillings, whichever is higher in respect of the importation of excisable goods requiring an excise stamp, in the case of a person to whom section 15(1) (b) applies. Finance Act, 2018 Effective 1st July 2018 

(2) A licensed manufacturer who manufactures excisable goods in premises that are not specified on the manufacturer’s licence as the factory in which the manufacturer is permitted to manufacture the goods shall be liable to a penalty equal to double the excise duty payable on those goods.

(3) If under section 27(1) has been applied to deem a licensed manufacturer to have removed excisable goods from excise control, the manufacturer shall be liable to pay a penalty equal to double the excise duty payable on those goods.

(4) The Tax Procedures Act, 2015 shall apply to penalties imposed under this section.