The Auditor General has revealed that over 9.6 million excise stamps are missing from the Kenya Revenue Authority (KRA). This revelation has raised serious concerns about tax evasion and the possible flooding of fake goods into the market.
Excise stamps are used to show that products such as alcohol, cigarettes, soft drinks, and cosmetics have met tax requirements. They also help in ensuring that consumers are buying genuine and safe products.
The disappearance of such a huge number of stamps suggests that they could have fallen into the wrong hands, potentially leading to illegal trade.
The Auditor General’s report does not provide clear details on how the stamps went missing. There is no explanation of when they disappeared, who might be responsible, or whether any action has been taken to prevent further loss.
This lack of transparency has only fueled suspicions that some officials within KRA might be involved in the scandal. If these missing stamps end up in the black market, unscrupulous traders could use them to sell products without paying taxes, leading to massive losses for the government.
The issue of counterfeit goods in Kenya is already a big problem. Many traders bring in fake products such as cigarettes and alcohol, which are not only harmful to consumers but also damage the businesses of legitimate manufacturers.
The Kenya Association of Manufacturers (KAM) has previously warned that illicit trade accounts for about 40% of all goods in the country.
The disappearance of millions of excise stamps could make this situation even worse by making it easier for criminals to introduce fake goods disguised as genuine ones.
This is not the first time concerns have been raised about KRA’s handling of excise stamps. In 2022, President William Ruto pointed out that while KRA was selling 2.9 billion excise stamps, the expected number should have been around 12 billion.
This raised suspicions that some stamps were being used fraudulently, possibly by cartels working within KRA. The current case of the missing 9.6 million stamps only adds to these concerns and suggests that the problem is far from being solved.
Authorities need to act swiftly to address this issue. Investigations should be conducted to establish how the stamps went missing and who is responsible. The government should also tighten controls to ensure that excise stamps do not end up in the wrong hands.
If this issue is not dealt with firmly, tax evasion will continue, leading to massive revenue losses while allowing fake and possibly dangerous goods to flood the market.
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