James Momanyi @jamomanyi
Kenya Revenue Authority (KRA) has said it will withdraw the licences of companies and clearing agents involved in the importation of contraband sugar said to contain harmful metals like mercury and copper.
Head of Tax Policy Office Maurice Oray said the taxman now has powers under a new legislation to crack the whip on those involved in the illegal trade of contraband goods and counterfeits that have killed the local industry and endanger consumers.
In the past few weeks, the government has mounted a crackdown on contraband and illicit goods and netted thousands of tonnes of illegal sugar and counterfeit goods hidden in various warehouses in different parts of the country.
Meanwhile, KRA is optimistic that it will raise the projected Sh1.9 trillion in the 2018/19 financial year due to the enabling tax reforms that have been proposed in the Finance Bill, 2018.
Oray, who was speaking during a stakeholders’ budget sensitisation forum on the Finance Bill, 2018 in Nairobi yesterday said that the various tax reforms announced by the Treasury in the Finance Bill, 2018 will give the taxman headway to raise the ambitious revenue targets.
The Finance Bill, 2018 has made a number of amendments to various Acts, either to increase tax collection or improve on tax administration.“KRA is now at the advantage of seeing the transaction of each taxpayer from the automated processes and we expect to meet the targets. We should not only meet but surpass it,” Oray said.
KRA has been tasked to collect domestic revenues estimated at Sh1.92 trillion, comprising ordinary revenues (Sh1.74 trillion) and Appropriations in Aid (AIA) amounting to Sh179.9 billion.
Some of these amendments include reforms on the Income Tax Act (Cap. 470), Value Added Tax, 2013, Excise Duty Act, 2015, Tax Procedures Act, 2015, Betting, Gaming and Lotteries Act (Cap. 131) and Stamp Duty Act.