@BusinessDaily

Spotlight on fake stamps as beer tax falls Sh4.6bn

1 months ago, 15 Apr 18:31

By: Constant Munda

Excise tax collections in eight months of the current financial year fell by Sh4.67 billion compared to a year earlier, reflecting the impact of the increased sale of illicit and counterfeit liquor. Official Central Bank of Kenya statistics indicates the Kenya Revenue Authority collected Sh104.706 billion in excise duty between July and February compared with Sh109.38 billion the previous year. The taxman has struggled to collect trade taxes from beer, cigarettes and spirits this financial year due to a rise in production and sale of counterfeit and illicit products. Some cartels, which largely target the spirits segment, have infiltrated the market, including some of the licensed liquor manufacturers.  They process substandard drinks and distribute them using own fake excise stamps, undercutting genuine distillers despite the implementation of the Electronic Goods Management System in September 2016, a section of licensed liquor distillers said mid-January. The system allows the KRA to monitor and collect production data at the factory level, reducing chances of revenue leakage. Commissioner-general John Njiraini said in February industry analysts had termed excise duty in six months through last December “unusual”, referring to 16.3, 16.0 and 11.2 per cent drop in duty collections from beer, cigarettes and spirits, respectively.
Read More


Category: business economy news lifestyle

Suggested

25 minutes
@BusinessDaily -
New crop-ruining worm headed for Kenya, Kalro warns

Drought-resistant crops such as cassava, potatoes at biggest risk. ...

Category: business news lifestyle economy
25 minutes
@BusinessDaily - By: Brian Ngugi
Job loss fears as 33 firms lose import permits

Twenty companies to ship in consolidated cargo in crackdown on tax evaders and fake goods . ...

Category: business news corporate
25 minutes
@BusinessDaily - By: Brian Ngugi
Barclays investors to approve external auditor at AGM

BBK recorded Sh6.93 billion after-tax profits for last year. ...

Category: business news lifestyle economy
7 hours ago, 16:08
@BusinessDaily - By: Mike Eldon
ELDON: It’s futile to stand in the way of new technology

The solution lies in imparting those affected with new skills in order to cope. ...

Category: business news
7 hours ago, 15:38
@BusinessDaily - By: Scott Bellows
BELLOWS: Selecting degree course in wake of quality debacle

Universities with competent staff offer students value for their money in various academic programmes. ...

Category: business news markets corporate opinion economy lifestyle
25 minutes
@BusinessDaily - By: Constant Munda
Setback for manufacturers in push for zero-rate on raw material

KAM argued that the changes will improve the competitiveness of Kenyan-made goods in international markets. ...

Category: business news lifestyle economy markets opinion corporate

@BusinessDaily

Spotlight on fake stamps as beer tax falls Sh4.6bn

1 months ago, 15 Apr 18:31

By: Constant Munda
Excise tax collections in eight months of the current financial year fell by Sh4.67 billion compared to a year earlier, reflecting the impact of the increased sale of illicit and counterfeit liquor. Official Central Bank of Kenya statistics indicates the Kenya Revenue Authority collected Sh104.706 billion in excise duty between July and February compared with Sh109.38 billion the previous year. The taxman has struggled to collect trade taxes from beer, cigarettes and spirits this financial year due to a rise in production and sale of counterfeit and illicit products. Some cartels, which largely target the spirits segment, have infiltrated the market, including some of the licensed liquor manufacturers.  They process substandard drinks and distribute them using own fake excise stamps, undercutting genuine distillers despite the implementation of the Electronic Goods Management System in September 2016, a section of licensed liquor distillers said mid-January. The system allows the KRA to monitor and collect production data at the factory level, reducing chances of revenue leakage. Commissioner-general John Njiraini said in February industry analysts had termed excise duty in six months through last December “unusual”, referring to 16.3, 16.0 and 11.2 per cent drop in duty collections from beer, cigarettes and spirits, respectively.
Read More

Category: business economy news lifestyle

Suggested

25 minutes
@BusinessDaily -
New crop-ruining worm headed for Kenya, Kalro warns

Drought-resistant crops such as cassava, potatoes at biggest risk. ...

Category: business news lifestyle economy
25 minutes
@BusinessDaily - By: Brian Ngugi
Job loss fears as 33 firms lose import permits

Twenty companies to ship in consolidated cargo in crackdown on tax evaders and fake goods . ...

Category: business news corporate
25 minutes
@BusinessDaily - By: Brian Ngugi
Barclays investors to approve external auditor at AGM

BBK recorded Sh6.93 billion after-tax profits for last year. ...

Category: business news lifestyle economy
7 hours ago, 16:08
@BusinessDaily - By: Mike Eldon
ELDON: It’s futile to stand in the way of new technology

The solution lies in imparting those affected with new skills in order to cope. ...

Category: business news
7 hours ago, 15:38
@BusinessDaily - By: Scott Bellows
BELLOWS: Selecting degree course in wake of quality debacle

Universities with competent staff offer students value for their money in various academic programmes. ...

Category: business news markets corporate opinion economy lifestyle
25 minutes
@BusinessDaily - By: Constant Munda
Setback for manufacturers in push for zero-rate on raw material

KAM argued that the changes will improve the competitiveness of Kenyan-made goods in international markets. ...

Category: business news lifestyle economy markets opinion corporate
Our App