In summary
- Some of the goods set to be taxed in real time include beer, cigarettes, airtime, petroleum and some juices.
- Obel said that eTIMS will help businesses reduce compliance costs by cutting cost of purchasing tax invoicing equipment like the ETR machines.
The Kenya Revenue Authority is planning to tax the sale of some goods and services in real time.
KRA Deputy Commissioner of domestic taxes George Obel says that this will be done through the excisable of Tax Invoice Management System (eTims).
Some of the goods set to be taxed in real time include beer, cigarettes, airtime, petroleum and some juices.
According to Obel the authority has been having a piloting of the eTIMS with some 298 Value Added Tax registered taxepayers.
“Once we have successfully on-boarded the VAT-registered businesses on eTIMS, the next step will be rolling out the same to suppliers of excisable goods and services to bring more efficiency to the collection of excise duty,” said Mr Obel.
Save costs
Obel said that eTIMS will help businesses reduce compliance costs by cutting cost of purchasing tax invoicing equipment like the ETR machines.
This will also improve revenue collection from the KRA side.
Fake stamps have been a thorny issue for KRA, with President William Ruto particularly irked by the small number of excise stamps sold by KRA in proportion to the economy compared to its neighbours.
“Part of our revenue gets lost because we have more fake stamps than genuine stamps on our manufactured goods, how is that possible? We have to sort that out because we are losing revenue,” President Ruto said in October last year.
