The Kenya Revenue Authority (KRA) has suffered loss amid standoff at the Kenyan-Uganda border over Covid-19 vaccine certificates.
Authority highlighted that initially before the pandemic struck it collected Sh1 billion every month from the border, an amount that has dropped to Sh600 million.
However, there has been improved customs revenue in the first half of 2021-2022 fiscal year that saw a 19.5 per cent growth to hit Sh355.9 billion.
The taxman attributed the improved customs collection to investment in technology and a withdrawal of clearance services from the border points.
Kenya fully rolled out the Integrated Customs Management System (ICMS) exports which has significantly reduced the compliance side 48 hours to one now, since document verification is now done online, elimination of pre shipment physical inspection by customs exports.
Customs Border Control commissioner at KRA Lilian Nyawanda said that businesses at the borders have reduced in a big way because the borders are now just transit points.
“Now we don’t do any clearance at the borders, this has enabled us to eliminate over 90 per cent of the challenges and that is why you are seeing the revenue that you are seeing.
You are all aware that we have never performed the kind of performance that we are registering now,” she said.
The authority also revealed that it had commenced discussions with the Organisation for Economic Co-operation and Development (OECD) and Centre for Tax Policy and Administration on collaboration on the Two-Pillar Approach by the Inclusive Framework.
As part of the implementation of the two-pillar approach, countries and jurisdictions commit to a standstill or withdraw measures such as Digital Services Tax.
The deal that is expected to come into effect in 2024, has currently been consented to by 137 out of the 141 OECD Inclusive Framework countries and jurisdictions. Kenya is one of the four countries that have not signed.
Other countries that have not signed include Nigeria, Pakistan, and Sri Lanka.