NAIROBI, Kenya, Sep 5- The Kenya Revenue Authority (KRA) has seized 25 containers of hides and skins at the Port of Mombasa that would have led to the government losing approximately Sh75 million in export duty.
KRA Commissioner in charge of Investigation and Enforcement department Edward Karanja through a statement said that the agency was able to intercept the containers when the traders tried to smuggle the consignment.
“KRA received a tipoff that the involved merchants were in the process of disrupting and scuttling the ongoing investigations by offering bribes,” said Karanja.
The intercepted consignment was among 50 containers of hides and skins that had been set aside for 100percent verification on suspicion of being mis-declared as other goods to evade the payment of export duties.
According to KRA, the traders load the containers with raw hides and skins meant for export from local godowns in the absence of Customs officers which is contrary to customs law on exports.
Thereafter, they make false information in the customs systems on the description of goods, local exporter, country of destination, and weight.
“It is worth noting that, the goods declared in customs export documents are disguised as those that are exempted from export duties,” KRA said in a statement.
The taxman said three suspects were arrested when they allegedly to bribe KRA officers with Sh700,000.
KRA said it has tightened the noose against perpetrators of a tax evasion scheme on non-payment of export duty on locally sourced raw hides and skins, in contravention of Customs laws.
“KRA is determined to ensure there is a fair playing ground for a legitimate business to thrive and the public is encouraged to undertake legitimate and clean business,” said Karanja.
