Taxman nabs goods worth Sh897m as it battles illicit brews
Kenya Revenue Authority (KRA) has nabbed products worth Sh897 million as the battle against illicit brews, drug, and substance abuse escalates in Kenya.
This was after the authority took a significant step by deploying its officers to all excisable goods manufacturing plants to bolster compliance with the law.
Under excise duty regulations, KRA is empowered to station its officers at factories producing excise tax-covered goods, including beer, wines and spirits, cigarettes, mineral water, soft drinks, and juices, among others.
These officers, also referred to as resident staff, are tasked with implementing compliance, providing service support, and enforcing initiatives, including identifying any irregularities and discrepancies to ensure accurate payment and filing of excise taxes by the manufacturers.
In addition to the resident staff, KRA employs other monitoring measures such as installing CCTV cameras inside factories, which are connected to the KRA system to enhance security.
KRA Commissioner General, Humphrey Wattanga, explained that this move follows a notification from the national government outlining actionable measures against outlawed substances across the country.
“In the current Financial Year 2023/24, KRA has implemented 976 interventions on illicit trade resulting in the seizure of various products with a market value of Ksh 897.244 million. KRA remains committed to collaborating with all Government Agencies in the fight against illicit brews, drug, and substance abuse,” has stated Wattanga.
Addressing the Senate Standing Committee on Trade, Industrialisation, and Tourism, Wattanga revealed that these seized products were confiscated following 976 interventions on illicit trade conducted between last year and this year.
He made these remarks in response to a petition presented before the Senate, inquiring about the measures the Authority is taking to enforce tax compliance at manufacturers such as East African Breweries Ltd (EABL).
Furthermore, the authority emphasized that there have been no discrepancies in manufacturing ingredients with tax implications dating back five years.
“KRA continues to collaborate with other Government Agencies within the Multiagency framework to promote legitimate trade and protect society against harmful products such as illicit alcohol, through various operations, border patrols, surveillance, and monitoring of cargo,” added the Commissioner General.
