Press Center | Freight Shipping Logistics News
Jul 29, 2009
General
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More than 600 clearing and forwarding agents might lose their Simba System passwords for keeping entries from January this year hanging and failing to remit taxes to the Kenya Revenue Authority (KRA).
More than 600 clearing and forwarding agents might lose their Simba System passwords for keeping entries from January this year hanging and failing to remit taxes to the Kenya Revenue Authority (KRA).
After meeting with senior KRA officials over the matter, the Kenya International Freight and Warehousing Association (Kifwa) on Wednesday said it had ironed out a deal with the tax collector who gave them a deadline for remittance.
“We met the customs services department officers and discussed the matter,” said Kifwa chairman Gerald Kagumo on phone from Nairobi, “and reached an agreement that within seven days the agents have to remit the cash else they will be blocked from accessing the system.”
To avoid getting into trouble with KRA, Mr Kagumo said agents should not lodge documents whose payment they have not received from the importers.
“Heavy penalties will be imposed on agents who delay in paying duties to the taxman and keep their entries hanging on the system,” Mr Kagumo said, adding that KRA also renewed a memorandum of understanding it had entered into with Kifwa in 2007.
He however blamed some corrupt KRA officers for colluding with importers to release goods without taxes being remitted.
Vice chairman Peter Mambembe said unscrupulous importers moved from one agent to another, presenting fake clearing documents which leave agents in trouble with KRA.
“It is the importer who should be held accountable for any fake documents,” he said. “Agents should be careful with such importers because when their passwords are blocked and they lose their licences the businessmen will not be there for them,” he added.
A week ago, KRA blocked 69 agents from accessing the system for lodging documents but failing to pay taxes for cargo clearance.
In a statement posted on its website, KRA said the measure had been effective since it had netted Sh109 million from agents who remitted the taxes and had their passwords reinstated.
After meeting with senior KRA officials over the matter, the Kenya International Freight and Warehousing Association (Kifwa) on Wednesday said it had ironed out a deal with the tax collector who gave them a deadline for remittance.
“We met the customs services department officers and discussed the matter,” said Kifwa chairman Gerald Kagumo on phone from Nairobi, “and reached an agreement that within seven days the agents have to remit the cash else they will be blocked from accessing the system.”
To avoid getting into trouble with KRA, Mr Kagumo said agents should not lodge documents whose payment they have not received from the importers.
“Heavy penalties will be imposed on agents who delay in paying duties to the taxman and keep their entries hanging on the system,” Mr Kagumo said, adding that KRA also renewed a memorandum of understanding it had entered into with Kifwa in 2007.
He however blamed some corrupt KRA officers for colluding with importers to release goods without taxes being remitted.
Vice chairman Peter Mambembe said unscrupulous importers moved from one agent to another, presenting fake clearing documents which leave agents in trouble with KRA.
“It is the importer who should be held accountable for any fake documents,” he said. “Agents should be careful with such importers because when their passwords are blocked and they lose their licences the businessmen will not be there for them,” he added.
A week ago, KRA blocked 69 agents from accessing the system for lodging documents but failing to pay taxes for cargo clearance.
In a statement posted on its website, KRA said the measure had been effective since it had netted Sh109 million from agents who remitted the taxes and had their passwords reinstated.
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