taxNews
Konnectplus
Kenya

Bonded warehouses being closed for small traders

id : 101 Customs   
posted by : Admin
 DOQ : 2020-05-22 12:06:46
   Admin
  
101_20051156.jpg

Independent importers of wines and spirits, cigarettes, motor vehicles and spare parts are set to be hit hard as KRA effects tough new rules to prevent them from using bonded warehouses.

Bonded warehouses allow such importers to hold goods in KRA Customs controlled premises without paying duty until they are ready to sell them in the local or export markets. It also allows them to sell in smaller quantities to customers and pay tax on only what they have sold.

From 12 August 2020, such goods will no longer be warehoused and will attract full custom duty at the time of entry into the country.

Only large manufacturers such as EABL will be allowed to use custom bonded warehouses for wines, spirits and other alcohol related products.

The net effect is that small independent importers, who have provided thriving competition for local brewers in supplying the bar and restaurant industry will technically be knocked out of the market.


You may also like...

109_21040304.jpg

By John Muiruri Reviewed April 06, 2021 The difference between being an independent contractor

108_21040845.jpg

The Kenya Revenue Authority (KRA) on Monday suffered a blow after the High Court sitting in Nairobi
Court case: Treasury agreements aiding the rich evade paying taxes This claim is contained in a cou

106_20100718.jpg

106_20100718.jpg

KRA to collect Sh10bn more after raising tax. The government expects to collect an additional Sh10

103_20050450.jpg

103_20050450.jpg

Goods can be stored in a Custom Bonded Warehouse up to nine months without having to pay VAT or othe

100_20051237.jpg

100_20051237.jpg

Tax Laws (Amendment) Act 2020 (the Act) was assented to by the President on 25/05/2020. Key chang

my Views
(0)
taxBaddy.com @2014-2021 All rights reserved
Powered by : gravityworks@taxbaddy.com