Times Tower. FILE PHOTO | NMG
The taxman plans to enlist global help in the fight against
trade in smuggled cigarettes from Europe, China and Dubai, which has
partly hit excise tax collections.
The Kenya Revenue
Authority (KRA) yesterday said the country will ratify the World Health
Organisation’s treaty on combating illicit global trade in cigarettes
before the July 2 deadline.
Countries that ratify the
protocol are required to track and trace production and sale of tobacco
in their jurisdictions, keep records as well as monitor and regulate
transit and online sales.
Signatories are also
obligated to share information, offer mutual legal assistance and
extradite suspects in illicit tobacco trade.
The WHO’s Protocol to Eliminate Illicit Trade in Tobacco
Products, which was concluded in November 2012, requires signatures from
40 countries to become operational.
About 36 countries have ratified the protocol, and Kenya is seeking to be among four additional States required for it work.
“The
tobacco chain globally is very complicated. We’ve seen, for example,
evidence of tobacco that has found its way into our country from
Montenegro,” said KRA commissioner-general John Njiraini. “And we have
cases that we are investigating and we are making good progress.”
The
KRA Excisable Goods Management System, implemented in 2013 and modified
in 2016 to include smartphone verification capabilities, has
capabilities to remotely track and trace excisable products such as
cigarettes from factories through the markets.
Excise tax from cigarettes fell by 16 per cent in six month to last December, the KRA said without disclosing actual numbers.
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