Kenya Revenue Authority has issued a statement that the Value Added Tax (VAT) on Liquefied Petroleum Gas (LPG) currently being enforced was reintroduced in July 2021 and is not a new tax as was being viewed.
A compliance advisory was issued to the Namanga Station for implementation and an additional assessment was carried out on Friday May 6, 2022.
Speaking Friday during a press briefing at KRA headquarters, the Deputy Commissioner, Custom Revenue and Regional Coordinator Mr. Joseph Kaguru said that the reports were provided to the taxpayers and the affected importers for compliance.
“The affected importers will be facilitated to clear their consignment after full compliance,” said Mr. Karugu.
He noted that the LPG products in question were not sourced from the East African Community Partner States.
“We have also noted with concern that the affected trucks are blocking the Namanga border, inconveniencing other compliant importers and posing a security risk at the border, ” he said.
Karugu added that KRA had an engagement with importers representatives and owners of the truck and they instructed them to quickly comply and clear their LPG consignment from the Namanga One Stop Border Post (OSBP).
The overall mandate of KRA is to assess, collect and account for all tax revenue in accordance with the written laws and the specifed provision of written laws.