The Kenya Revenue Authority has seized products bearing fake excise stamps with an estimated value of Sh5 million.
This follows an intelligence-led operation in Mombasa county on Wednesday.
The taxman said the operation was conducted following intelligence information on excise duty tampering and fake excise stamps in Mombasa county.
According to sources within KRA, incidences of tampering with excise stamps have been on the rise following the inclusion of drinking water into the EGMS regime in 2019.
Additionally, KRA has received complaints on unfair business practices where some water manufacturers engage in illicit water production to avoid payment of the requisite taxes.
“Not only has illicit trade enabled the evasion of payment of huge amounts of taxes with each passing financial year but also poses both a health and security risk,’ a statement to newsrooms read.
The operation led to the discovery of various offenders namely Sliquor stores in Nyali Centre, Simple Life Trading in Bombolulu, Minasota Traders Limited in Bombolulu area, Coral Limited in Kongowea, Naseem Salim Mohamed trading as Al Hatim Traders in Tudor and Classic Mini Grocers in Kongowea, among others.
The drinking water products seized included Ahlan ice mineral water, Rayan ice purified water, Rehaan ice and Active Sparkle purified drinking water.
Several brands of alcoholic beverages and soft drinks were also seized in the same operation at Sliquor stores in Nyali Centre with products including Piston Premium Vodka, Red star vodka, Bacardi carta blanca, Fever tree tonic cans, sanpellegrino soft drinks among others.
KRA said the products were found to have either fake stamps, stamps of products with a lower value and non-activated stamps.
“Investigations into the mater is ongoing and the offenders will be charged for various offences including possession and offering for sale excisable goods bearing misdeclared excise stamps, excisable goods with defaced stamps, excisable goods bearing non-activated stamps contrary to Section 28 and 39 of Excise Act, 2015as read together with Regulation 12 of legal notice 53 of 2017,” the statement read in part.
Despite seizing the products and the vehicles, KRA has also summoned the directors of the said companies.
