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...

111_23050623.jpeg

The tax treatment of lease transactions in Kenya is based on whether the lease qualifies as a lease

110_23050723.jpeg

BACKGROUND In January 2016, the International Accounting Standards Board (‘IASB’) issued IFRS

109_21040304.jpg

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

108_21040845.jpg

108_21040845.jpg

The Kenya Revenue Authority (KRA) on Monday suffered a blow after the High Court sitting in Nairobi
WHAT HAS CHANGED? HMRC has changed its approach to VAT on deposits. The change affects situations w

102_20051257.jpg

102_20051257.jpg

Kenya’s Taxman will introduce an amnesty programme for income tax, VAT and Excise Duty once the Fi

my Views
(0)
taxBaddy.com @2014-2023 All rights reserved
Powered by : gravityworks@taxbaddy.com