The Kenya Revenue Authority (KRA) has seized 25 containers loaded with hides and skins at the Mombasa port that would have seen the taxman Sh75 million in revenue.
The intercepted consignment was among 50 containers of hides and skins that had been set aside for 100 per cent verification on suspicion of being misdeclared as other goods to evade the payment of export duties.
The scheme involved stuffing/loading containers with raw hides and skins meant for export from local godowns in absence of Customs officers which is contrary to customs law on exports.
The tax agency intercepted the consignment as the traders attempted to smuggle them out of the country by bribing KRA officers.
KRA noted that the unscrupulous traders usually stuff containers with hides and skins at local godowns in the absence of Customs officers.
They then make false declarations of goods, local exporter, country of destination and weight.
The taxman jointly with EACC laid a trap and were able to arrest three (3) suspects who had offered a bribe of Ksh700,000.
KRA says it has tightened its noose on a tax evasion racket that exports locally sourced hides and skins without paying duty.
“KRA is determined to ensure there is a fair playing ground for legitimate business to thrive and the Public is encouraged to undertake legitimate and clean business. KRA has an elaborate intelligence network to detect, disrupt and deter such tax evasion schemes to create a level playing field for all,” said The Commissioner, Investigation and Enforcement Edward Karanja.
Exportation of hides and skins is restricted and thus attracts an export duty.
