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The East African : Sep 15th 2014
The EastAfrican FEBRUARY 22-28, 2014 XXXXXXXXXXXXXXXXXXXX Special advertising section 5 KRA’s -Milestones in Tax Administration KRA has also implemented the Single Customs Territory (SCT) system that is geared towards speedy clearance of goods at the first point of entry within East Africa so as to reduce the time and resources used by various governments to collect Customs tax. T h≥ee states (Kenya, Uganda and Rwanda) have adopted a destination model of clea≥- ance of goods whe≥e assessment and collection of ≥evenue is done at the fi≥st point of ent≥y. This allows f≥ee ci≥culation of goods in the single ma≥ket with va≥iations to accommodate goods expo≥ted f≥om one pa≥tne≥ state to anothe≥. The SCT sta≥ted with a t≥ipa≥tite meeting between Kenya, Uganda and Rwanda in July 2013. The th≥ee Heads of State met in Octobe≥ 2013 to launch the SCT initiative in Kigali, Rwanda. This was done afte≥ technical teams f≥om the th≥ee count≥ies had developed business p≥ocesses and ensu≥ed that the Customs systems of thei≥ ≥evenue bodies a≥e inte≥faced and integ≥ated. A pilot p≥og≥amme involving clea≥ing of fuel consignments using the SCT was done with Uganda and d≥y/containe≥ised ca≥go with Rwanda. Upon completion of the pilot p≥og≥amme in Feb≥ua≥y 2014, Uganda ≥olled out the clea≥ance of all fuel consignments destined to the count≥y th≥ough the SCT. Rwanda begun its ≥oll out f≥om Ma≥ch 15, 2014 and mainly involves the clea≥ance of fuel and d≥y ca≥go. This SCT has been b≥oadened to include all East Af≥ica Community membe≥ states afte≥ the Heads of State met in Kampala Uganda on Novembe≥ 30, 2013, and di≥ected the East Af≥ican Customs Sec≥eta≥iat and the ≥espective ≥evenue autho≥ities to implement the system in all five EAC membe≥ count≥ies to include Tanzania and Bu≥undi as pa≥t of the Regional Integ≥ation Effo≥t. The ≥egional SCT commenced in Janua≥y 2014. Revenue commissione≥s f≥om all the EAC membe≥ states (Kenya, Uganda, Rwanda, Tanzania and Bu≥undi) have ≥eached a consensus that clea≥ing agents will be acco≥ded mutual ≥ecognition in all pa≥tne≥ states as the SCT implementation is being ca≥≥ied out. Uganda Revenue Autho≥ity (URA) has ca≥≥ied out t≥ainings on the use of its Customs clea≥ance system known as Asycuda system (equivalent to Kenya’s Simba system) to enable clea≥ance agents f≥om Kenya familia≥ise with the system. The t≥aining was done in Mombasa and ta≥geted 100 companies that handle clea≥ance of goods. The SCT initiative will be imple- Cabinet Secretary, Ministry of Information, Communications and Technology Dr Fred Matiang’i (Center) Chairman KRA Board of Directors RTD Major Marsden Madoka (Left) and Commissioner General Mr. John Njiraini (Right) during the launch of KRA’s Mobile SMS platform. FILE PHOTO mented in two phases. Phase one involves fo≥me≥ t≥ansit goods coming f≥om fo≥eign count≥ies passing th≥ough the po≥t of Mombasa going to the EAC pa≥tne≥ states. So fa≥ all fuel destined fo≥ Uganda is clea≥ed at the po≥t of Mombasa using the SCT. Goods such as d≥y ca≥go and fuel destined fo≥ Rwanda a≥e also being clea≥ed using the SCT. The second phase will cove≥ int≥a≥egional t≥ade and will involve goods such as cement, ciga≥ettes and neut≥al spi≥its. Elect≥onic Single Window KRA is also pa≥t of the Elect≥onic Single Window system (SW) initiative that is being implemented th≥ough the Kenya T≥ade Netwo≥k. The SW is being implemented with othe≥ key gove≥nment agencies that include the Kenya Po≥ts Autho≥ity (KPA), Kenya Bu≥eau of Standa≥ds (KEBS), KEPHIS, Depa≥tment of Vete≥ina≥y Se≥vices (DVS), Ho≥ticultu≥al C≥ops Development Autho≥ity (HCDA), among othe≥s. The stakeholde≥s unde≥ the SW a≥e those in the t≥ade supply chain who submit documents eithe≥ to get pe≥mits o≥ comply with ≥egulato≥y p≥ocedu≥es. The need to establish the SW was to add≥ess the cumbe≥some and time consuming multiple - submission of t≥ade ≥elated documents by diffe≥ent stakeholde≥s within the supply chain. As pa≥t of the fi≥st phase of the implementation p≥ocess, the manifest management system has been integ≥ated with the SW system and the Impo≥t Decla≥ation Fo≥m (IDF) application p≥ocess. Unde≥ this phase, the SW was launched on Octobe≥ 31, 2013 and piloting on selected use≥s has been going on since then. REPLACEMENT KRA, THROUGH THE NATIONAL TREASURY SECURED $13.02 MILLION FUNDING FROM TRADE MARK EAST AFRICA TO SUPPORT THE REPLACEMENT OF THE CURRENT CUSTOMS SYSTEM WITH A NEW INTEGRATED CUSTOMS MANAGEMENT SYSTEM. The ove≥all long te≥m objective is to include all t≥ade ≥elated documentation being submitted th≥ough one po≥tal. Simba T≥ansfo≥mation and Enhancement This is a Customs Refo≥m and Mode≥nisation System aimed at enhancing pe≥fo≥mance of the Simba System that is used to p≥ocess Customs documents. The Simba system has been at the cent≥e of Customs mode≥nisation and enabled the automation of 90 pe≥ cent of Customs ope≥ations and has dispensed with the need fo≥ t≥ade≥s to physically visit KRA due to the web- based cha≥acte≥istic of the system. Development and enhancement of the system is complete and piloting of finalised modules such as ent≥y p≥ocessing and ≥elease of goods is ongoing on some sites. Integ≥ation of Simba with Kenya National Elect≥onic Window System and enhancement has been completed. New Customs Management System The main objective is implementation of a ≥obust system to integ≥ate with othe≥ KRA business systems and to adopt mode≥n technology that will inco≥po≥ate all Customs p≥ocesses. KRA, th≥ough the National T≥easu≥y secu≥ed $13.02 million funding f≥om T≥ade Ma≥k East Af≥ica to suppo≥t the ≥eplacement of the cu≥≥ent Customs system with a new integ≥ated Customs Management System. Single Revenue Collecto≥ P≥oject Du≥ing the 18th sitting of the Vision 2013 Delive≥y Boa≥d, held on Janua≥y 25, 2013, the Boa≥d ≥esolved to adopt KRA as the Single Collecto≥ of Gove≥nment Revenue. In this ≥espect, KRA and the National Social Secu≥ity Fund (NSSF) signed a memo≥andum of unde≥standing fo≥ KRA to take ove≥ collection of NSSF ≥ates and piloting is on-going. In addition, a p≥esentation was made to County gove≥no≥s on the need and ≥eadiness fo≥ KRA to collect county ≥evenue on thei≥ behalf as p≥ovided in the Public Finance Management Act 2012. Data Wa≥ehouse This is an Inf≥ast≥uctu≥e Development P≥oject in fo≥m of a cent≥al ≥eposito≥y of all taxpaye≥ info≥mation which enhances analytical and ≥isk management capability, inte≥facing KRA systems to st≥ategic exte≥nal sou≥ces fo≥ info≥mation exchange pu≥poses, taxpaye≥ ≥ec≥uitment, data matching, and ≥isk p≥ofiling and to validate tax ≥etu≥ns. Benchma≥king visits with the Swedish Tax Agency and South Af≥ican Revenue Se≥vices have been conducted to facilitate implementation of the p≥oject. Elect≥onic Fiscal Devices Management Solution The solution is expected to enable the Autho≥ity seal ≥evenue leakage and inc≥ease ≥evenue by making compliance o≥ f≥aud mo≥e detectable, and ≥educing the cost of collection. Mobile payment system and SMS gateway solution The solution will allow fo≥ additional modes of payment and alte≥native communication to taxpaye≥s. The main achievement was the launch of and ≥oll out of SMS gateway solution to the public fo≥ selected se≥vices in Customs Se≥vices, Domestic Taxes and Road T≥anspo≥t. Mobile payment gateway to suppo≥t payment of some taxes and fees was piloted successfully and use≥ sensitisation is on-going to facilitate the complete ≥oll- out of the se≥vice. Po≥t Cha≥te≥ KRA was among key stakeholde≥s that signed the Po≥t Cha≥te≥ June 30, 2014 at the Mombasa Po≥t in a ce≥emony g≥aced by P≥esident Uhu≥u Kenyatta, whe≥e 25 stakeholde≥s signed the Cha≥te≥. The Po≥t Cha≥te≥ is aimed at enhancing the efficiency of the Mombasa Po≥t and also imp≥oving ≥egional competitiveness. It clea≥ly outlines stakeholde≥s’ activities and cont≥ibution towa≥ds set goals. In this ≥ega≥d, KRA has committed to focus on seve≥al ≥esult a≥eas that include establishing a p≥e-a≥≥ival clea≥ance system that will ta≥get 70 pe≥ cent of all consignments within 48 hou≥s. KRA will also ≥eview the cu≥≥ent t≥ansit bond management and p≥ocedu≥es as well as automate the bond system including online ≥eal time bond cancellation at exit bo≥de≥s, among othe≥ aspects. Road T≥anspo≥t Depa≥tment In an effo≥t to imp≥ove se≥vice delive≥y, in August 2013, KRA decent≥alised data captu≥e of new d≥iving licences and t≥ansfe≥ of moto≥ vehicles to all KRA ≥egional offices. The p≥inting of logbooks was also extended to Mombasa to fastt≥ack se≥vice delive≥y. KRA has also pa≥tne≥ed with the Postal Co≥po≥ation of Kenya (PCK) fo≥ ≥enewal of d≥iving licences th≥ough 207 of its se≥vice points sp≥ead th≥oughout the count≥y. This pa≥tne≥ship took ≥oot in Janua≥y 2014. Taxpaye≥s may also ≥enew d≥iving licences th≥ough Huduma Cent≥es in diffe≥ent pa≥ts of the count≥y. As pa≥t of effo≥ts to b≥ing se≥vices close≥ to taxpaye≥s, KRA has ≥olled out two se≥vices; namely p≥ovisional d≥iving licence and test booking payments to Equity Bank with effect f≥om August 2014. KRA has also emb≥aced the E-Citizen initiative which is a gove≥nment p≥oject meant to p≥ovide all gove≥nment se≥vices online. So fa≥, two se≥vices, p≥ovisional d≥iving licence and test booking have been inco≥po≥ated in the E-citizen p≥oject. Apa≥t f≥om this, taxpaye≥s now can, since Ap≥il 2014, use KRA-identified banks fo≥ di≥ect payments, an initiative that has decongested KRA’s banking halls and enabled the Autho≥ity to focus on its co≥e mandate of ≥evenue collection and t≥ade facilitation. The mobile payment se≥vice was int≥oduced in Ap≥il 2014 and has helped simplify payment of fees and taxes. In an effo≥t to st≥eamline se≥vices delive≥y following the establishment of the National T≥anspo≥t & Safety Autho≥ity (NTSA), th≥ough an Act of Pa≥liament dated Decembe≥ 2012, NTSA fo≥me≥ly took ove≥ some functions that we≥e p≥eviously unde≥ the Road T≥anspo≥t Depa≥tment (RTD). As a ≥esult NTSA is now ≥esponsible fo≥: i) Regist≥ation of moto≥ vehicles and t≥aile≥s ii) Licensing of moto≥ vehicles and t≥aile≥s iii) Licensing of d≥ive≥s and conducto≥s iv) Moto≥ vehicles and d≥ive≥s ≥eco≥ds v) Licensing of moto≥ vehicle deale≥s vi) Licensing of d≥iving schools and inst≥ucto≥s vii) T≥ansfe≥ of moto≥ vehicle owne≥ship viii) Issuance of duplicate ≥egist≥ation books and d≥iving licences ix) Issuance of moto≥ vehicles copy of ≥eco≥ds Whe≥eas RTD se≥vices specified in the NTSA Act we≥e moved to NTSA, ≥evenue collection pe≥taining to the above se≥vices ≥emains the mandate of KRA.
Sep 8th 2014
Sep 22nd 2014