KRA’s attention has been drawn to reports that several LPG trucks are stuck at the Namanga One-Stop Border Post (OSBP) due to increase of LPG taxes.
KRA would like to clarify that the information is not true and misleading. The VAT on LPG currently being enforced was reintroduced in July 2021 and is not a new tax as reported. During a recent compliance check, KRA noted that there have been cases of undervaluation by importers on LPG products, which is an offence.
A compliance advisory was issued to the Namanga Station for implementation and an additional assessment was carried out on Friday 6th May, 2022. The reports were provided to the taxpayers for compliance and the affected importers will be facilitated to clear their consignments after full compliance.
It is also significant to note that the LPG products in question are not sourced from the East African Community Partner States as reported.
We have also noted with concern that the affected trucks are blocking the boarder, inconveniencing other compliant importers and posing a security risk at the border. KRA has had an engagement with importers representatives and owners of the trucks and they have been instructed to quickly comply and clear their LPG consignments from the Namanga OSBP.
The overall mandate of KRA is to assess, collect and account for all tax revenues in accordance with the written laws and the specified provisions of the written laws.