KRA surpasses revenue target by Sh100 million
The Kenya Revenue Authority has now substantially implemented all phases of the Excise Goods Management System, EGMS that aims at curbing the tax evasion by manufacturers which has in turn led to revenue shortfall from the sector.
KRA commissioner General John Njiraini says the automated production line tracking technology has already been implemented in key tobacco and spirits factories which where tracking and tracing of fake KRA stamps are detected.
Offenders evading exercise duty will have their products seized as well as prosecuted.
KRA has been on high alert to curb tax evasion by conducting crackdowns that lead to apprehension of traders using fake exercise duty stamps, which has over the years affected revenue collection.
KRA now says evasion of excise duty is well on its way to reducing after the successful implementation of the Excise Goods Management System for Tobacco as well as wines and spirits industries.
In the 2013/14 full year, the tax man managed to collect 963.8 billion shillings of which Value Added Tax accounted for 24.2% of the total collection, a growth from the 22.9 the previous year.
However, KRA now plans to charge VAT on aid funded projects to increase this VAT figure, a move that may illicit mixed reactions from the public.
KRA now targets to collect 1.1 trillion shillings in the 2014/2015 financial year.