Kenya moves to stop tax evasion scam

7 August 2006

The Kenyan government has introduced measures to prevent tax evasion in the leather industry, following an assessment that it could have lost KSh676 million between 2002 and 2004, according to Livestock and Fisheries Development Minister Joseph Munyao, who added that his ministry had established an office at the Internal Container Depot in Embakasi, Nairobi, to cross-check export documentation for hides, skins and leather. The government was reacting to a story previously published in a leading local newspaper, detailing a massive tax evasion scam by exporters. This feature quoted an unpublished report compiled by the Kenya Anti-Corruption Commission and Kenya Revenue Authority, that showed exporters employed various tactics to evade export duty, Veterinary Services Development Fund levy, and income tax. It also named government officials alleged to have colluded with some of the exporters. In an interview Minister Munyao said: 'A hides and skins taskforce, with membership from Veterinary department, KRA and Kacc, under KRA coordination is currently monitoring the export of hides, skins and leather, to prevent further illegal activities.'

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