Kenya traders count losses as excise duty stamps run out

By WINSLEY MASESE

Thousands of traders are losing out millions of shillings due to lack of excise duty stamps by the Kenya Revenue Authority (KRA).

The stamps allow them to sell products and goods and failure to have them amounts to crime as stipulated by the tax collector.

“I applied for the new stamps about two months ago and I am yet to receive them,” said a trader who deals with imported wines and spirits. The trader, who requested anonymity, explained that he has not been able to sell the wines since KRA forbids them from doing that without the stamps.  “My stockists cannot supply their products and this has seen my business operate below capacity,” complained the trader.

According to sources a firm contracted to print the stamps fell out with KRA hence the shortage of the stamps. 

No stamps

However, when contacted, Commissioner, Domestic Taxes Alice Owuor  said that the shortage of stamps had not been brought to her attention.

“I am surprised that there are no stamps and would have imagined that the issue would have been brought to my attention,” she said.

Owuor  referred The Standard to KRA head of Communication Kennedy Onyonyi who admitted there was a delay in the issuance of excise stamps for about two weeks.

However, he said this was due to procurement procedures and change of financing procedures, which  have since been sorted out.

Onyonyi said KRA received about 80 million of the stamps on Thursday and Saturday, last week. “Things are moving on well and we have already started issuing the stamps and will commence the next procurement process for the next consignment,” he stated.

Last month, KRA warned the public against manufacture, distribution, sale and consumption of goods, which do not bear their stamp.  The authority has come up with new generation stamp and the latest effort is aimed at informing the public. KRA seeks to improve its target collection and at the same time reduce incidences of counterfeit goods in the country.