Kenya Revenue Authority (KRA) missed the petroleum tax levy by almost KSh3 billion. Treasury aimed to raise KSh17.5 billion through the VAT with KRA collecting KSh14.6 billion.
The implementation of the 8 percent VAT on petroleum products came into effect on September 21, 2018, following a recommendation by the International Monetary Fund (IMF).
IMF had argued that taxation on petroleum would bridge the budget deficit leading to increased revenues and slowing down debt pileup.
Destruction of contraband goods
In other news, KRA said that it destroyed contraband goods worth more than KSh 800 million. In a letter sent to media outlets, KRA says it destroyed excisable illicit products at Stoni Athi, Kajiado County.
The products had been nabbed from the market for contravening various regulations as provided for under the Excise Duty Act. The products included bottles of beer, wine, spirits, and juices, packets of cigarettes, and fake excise stamps.
Moreover, the statement said the government would have lost over KSh190 million had the goods made it to the market.
Using the Excisable Goods Management System (EGSM), KRA has been able to combat illicit trade and contraband goods. Furthermore, the decentralization of Enforcement Division operations has enabled the taxman to combat the vice through increased surveillance of products in the market.
