How KRA is getting slammed for Auctioning 200+ Cars
Going by the economic times, the larger Kenyan population is not amused when on of their own is cornered by any agency or individuals. Numerous reports coming to our offices indicate that times are so tough, things so tight that it is best to let Kenyans be, especially during these tough economic times. Kenyans have continued pouring their indispensable anger on the Kenya Revenue Authority (KRA), over their decision to auction over 200 cars at the port of Mombasa. According to most of them, the pain imposed on importers should be spared considering the economic recession in the country and huge tax rates that have followed suit with it. Others could not hide their anger accusing the taxman of poor procedures in tax collection followed by very many irregularities.
In a public notice gazette on 21st June, KRA invited interested bidders to view the overstayed cargo among other assorted goods. The notice further explained the main reason of opening the cargo for auctioning had to be done because, most importers had failed to pay taxes of the products. Albeit this may be true, the timing is not well thought about.
With the auction set to happen between Wednesday and Thursday this week, Kenyans have stormed on social platforms accusing the taxman of unverifiable end to end terms.
“Reminds me when one importer brought in a 40ft container with shoes for right leg only. He didn’t pay tax. During the KRA auction he was the only bidder. He won. Next he imported left leg shoes. He did the same. He ended up paying almost nothing with two containers full of high value shoes,” Muchiti Bahati Denis
“Reminds me when one importer brought in a 40ft container with shoes for right leg only. He didn’t pay tax. KRA auction he was the only bidder. He won. Next he imported left leg shoes. He did the same. He ended up paying almost nothing with two containers full of high value shoes,” said Muchiti Bahati Denis while commenting on a twitter engagement with Nation Africa.
Alex Kenani on the other hand accused the government of using the method to gain money after a huge economic breakdown. He adds that the government is broke and the only way is to auction people’s property, something which he accounts that it would end up killing small and medium sized enterprises a great deal which used to drive the economy of the country. Despite these piercing chants the taxman has showed less resentment as it has not issued any statement of acumen over the same.
On Monday 21st June, the cargo warehouses registered a number of interested buyers who to view the commodities ahead of the auction. Importers of the goods have been given until the auction day to pay duty, ranging from Sh 200,000 to millions of shillings. Many of these importers fall under the MSME market space making it very difficult for them to raise the needed fees to free their cargo/cars. Again, banks are known to shy away from such due to the publicity they attract.
In a twitter statement the taxman gave out a mini auction procedure of auctioning to occur on Tuesday of 22nd June, which will include the public at the Inland Container Depot (ICD), Nairobi.
Several consignments have also been highlighted for auction. Most of the consolidated cargo on the brink of auction belong to small traders who get their goods from abroad majorly. A number of consolidated consignments have also been gazetted for auction. Consolidated cargo comprises majority of lots slated for auction, which are linked to small traders who import using front men who behave as clearing agents who at times end up not delivering taking long paying the requisite fees to clear cargo.
Many Kenyans demand confidentiality and atonement in KRA citing that it has failed protecting their number one working motto, of being Innovative, Exceptional and Trusted. Yet again it has failed to commit to the highest level of customer-service standards, after what has been seen at the port. However KRA still held its virtue of ensuring the law is cut on all offenders who fail to meet the tax regulations as stipulated under the constitution of Kenya.