Traders are reportedly evading electronic Tax Invoice Management System (eTIMS) and are instead opting to sell their materials in neighbouring countries.
The unscrupulous traders are using the porous Namanga-Taveta-Lungalunga and Busia border points.
eTIMS is a software solution that provides technological convenience to meet taxpayers’ compliance needs.
It is accessed through various electronic devices including computers and mobile phone applications, making it more convenient, user-friendly and flexible for businesses to use.
Officials from the Kenya Revenue Authority have however intensified patrols and made arrests along the said stations.
On Friday morning, KRA officers intercepted a trailer smuggling scrap batteries to Tanzania using the Voi border point.
The truck registration number KDG 039X was intercepted early morning a few kilometres from the Kenya-Tanzania border.
This comes even as the Scrap Metal Council suspended the renewal and issuance of export licences with immediate effect until further notice.
Council chairman Francis Mugo acted following the resurgence of wanton vandalism of critical national infrastructure.
Tanzania is said to be the leading destination of scrap batteries from Kenya while aluminium scrap is smuggled to Uganda.
Police have this year alone intercepted more than 50 trucks ferrying scrap batteries worth millions to Tanzania, but only a few were charged in court.
According to Mugo, most of those ferrying scrap to the neighbouring markets have no valid council licence as required by law.
“The council has and will not allow unscrupulous business people to spoil working atmosphere for others. Those smuggling scrap materials; be for warned that your days are numbered,” he said.
According to KRA, all taxpayers doing business are required to onboard eTIMS.
This provision includes taxpayers not registered for value added tax but are registered for turnover tax, monthly rental income, partnerships, corporation tax and individual income tax (including non-residents with a permanent establishment in Kenya.
The objective of eTIMS is to reduce the cost of compliance for VAT-registered businesses. Through integration with eTIMS businesses will benefit from real time invoice transmission providing accuracy in tax invoice declarations and reconciliation between filed returns and payments.
The council called on all licenced dealers to comply with the law and avoid abetting vandalism of critical infrastructure and private property.
Various ministries, which include that of Energy, have also been on the receiving end with several cases of vandalism of transformers being reported.
Mugo, however, assured the country that the council will work with all government agencies to arrest the situation before it is too late.
“These consultations are geared towards enlightening members on the need to work within the frameworks of the law,” he said.
For the council to effectively deliver to Kenyans, Mugo said, there's an urgent need to have Amendments to the Scrap Metal Act, 2015 to address the existing gaps.
“One of the challenges the council is facing is the limitation to hire its staff. The council gets secretariat service from the State Department for industry and so we cannot effectively vet scrap metal dealers as there are no inspectors gazetted due to the shortage of staff deployed to the council,” he said.
Notwithstanding the challenges, Mugo said the council will work within the existing legal framework to deliver on its mandate.
The council has already lodged its complaint with the Chief Justice over what it termed as an obstruction of its gains by the Judiciary.
It argues that the Judiciary has failed to deal firmly with the smugglers as provided for in law.
