A multi-agency team has unearthed a tax evasion scheme in Kirinyaga and Uasin Gishu counties involving illegal alcohol and cigarettes with a market value of Ksh 46 million.
Kenya Revenue Authority (KRA) says the operations which has so far led to arrest of one suspect averted the evasion of at least Ksh 19 million in taxes.
The ream seized a substantial cache of contraband cigarettes in Kienja Village, Kirinyaga County where 95 cartons of Supermatch cigarettes (each with 190 packets) and 64 packets of Oris cigarettes, with a combined market value of Ksh 29,254,000 were discovered preventing a tax loss amounting to Ksh 8,611,831 in Excise Duty and Value Added Tax (VAT).
The multi-agency team which conducted a separate operation in Ngeria, Eldoret where an illegal alcohol manufacturing facility was raided where illicit alcohol valued at Ksh 17,038,450 was seized.
During the operation KRA, confiscated items included 24,000 counterfeit excise stamps, over 600 bottles of unbranded and branded alcohol, approximately 100 liters of blended and pure ethanol, and 260 sticks of illicit cigarettes, along with various manufacturing materials such as counterfeit labels, empty bottles, and large containers.
The operation also averted estimated tax loss of Ksh 10,790,933.
