Importers of the goods have been given until the auction day to pay the duty, ranging from Sh200,000 to millions of shillings.
If you want to buy a car, you might need to take a trip to Mombasa and you might just be lucky to buy one from the Kenya Revenue Authority. KRA will auction more than 200 cars, including top-of-the-range, as well as other goods soon.
According to the Gazette Notice dated June 21, 2021, the taxman says the cars and the goods belong to Kenyans who have failed to pay taxes. Interested bidders have been invited to view goods ahead of the auctioning according to the Notice.
Importers of the goods have been given until the auction day to pay the duty, ranging from Sh200,000 to millions of shillings. It has also emerged other goods that are to be auctioned belong to small traders who have been hit hard by the Covid-19 pandemic.
The pandemic has led to millions of businesses in Kenya shutting down and millions of Kenyans losing their jobs. Among those affected are SMEs whose businesses are struggling to remain afloat due to taxes, and the high cost of doing business in Kenya.
The Kenya Revenue Authority is under pressure to maximize the collection of revenue to help the government support its ballooning budget. In the recently released budget of 3.6 trillion shillings, the government is banking on Kenyans paying taxes.
The National Treasury presented Kenya’s FY’2021/2022 National Budget to the National Assembly highlighting that the total budget estimate is 3.0 trillion shillings, a 4.8 percent increase from the 2.9 trillion shillings final FY’2020/21 budget.
The government projects that total revenue will increase by 10.3 percent to 2.0 trillion shillings, from the 1.8 trillion shillings in FY’2020/2021.
The increase largely being projected to come from ordinary revenue, which is to grow by 11.4 percent to 1.8 trillion shillings in FY’2021/22 from 1.6 trillion shillings in the FY’2020/21 budget.