Kenya Revenue Authority on Friday shut down an illegal liquor packaging plant in Nairobi and recovered dozens of potable alcoholic products.
The authority said the owners of the plant, located in Kasarani Industrial area, have been evading tax since all their products did not have the statutory Excise Tax stamps, which apply for such goods.
“The manufacture and distribution of alcoholic products is subject to stringent licensing conditions set by the authority,” KRA head of market surveillance Caxton Ngeywo, said moments after sealing off the plant registered as Julijo Investment Ltd.
He said KRA officials, helped by police, retrieved a truck load of Kingdom Gin-branded potable spirits packed in 18,000 bottles, assorted documents and a computer hard drive.
He said a previous raid at the same factory last December netted 2,460 bottles of potable spirits bearing counterfeit excise stamps. KRA has been facing massive tax evasion by the small firms amid increased pressures by the National Treasury to seal revenue leakages and meet collection targets. The taxman has an annual target of Sh1.2 trillion this year.
However, KRA has missed the revenue collection target for the first half of the 2015/2016 fiscal year by Sh47. 6 billion, according to the Treasury’s draft Budget Policy Statement released last week.
Ngeywo said KRA has stepped up its market surveillance efforts to nab unscrupulous traders perpetrating tax evasion crimes. He said they have successfully rolled out the Excise Goods Management System, an automated excise stamps management solution.
“All wholesalers, retailers and other outlets including consumers are reminded to purchase or offer for sale excisable goods from the duly licensed manufacturers and registered importers only,” he said.