Someone on X started an interesting discussion. He was warning Kenyans flying back home from other countries to avoid carrying electronics such as laptops and smartphones for they will be frustrated by officials from the Kenya Revenue Authority (KRA) who will be on standby asking for “taxes.”
The X post has elicited some sharp reactions online. But amidst that reaction, something has come out clear; that most Kenyans do not understand what we call “Customs Duty” when coming back home from other countries.
Customs Duty is a tax imposed on goods brought into Kenya. However various categories of passengers do enjoy concessions and entitlements as provided under the 5th Schedule of the East African Community Customs Management Act.
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What the person on X was complaining about was Customs Duty. All goods coming into the country from another country, accompanied or unaccompanied are subjected to this tax. However, passengers have a concession of USD 500 applicable only to goods for personal and/or household use. Passengers are also exempt from their personal effects.
Customs duty is paid at the port of entry on goods subject to taxation. The imported goods may be liable to Import Duty, Value Added Tax, Excise Duty, and any other applicable levies, when the allowable limits are exceeded. Therefore, when one gets in with a new phone or laptop, this tax has to be paid.
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When one lands with such goods, customs officers who are at the ports of entry verify imported goods assess the payable taxes on the goods, and collect duty on behalf of the Kenyan Government.
The taxes are assessed based on the Customs value of the item and by the rates provided by the East African Community Customs Management Act EACCMA (2004), VAT Act (2013), Excise Act (2015), and any other levies imposed by the Government legislation. Customs Valuation is based on the price paid or payable for the imported goods.
The tax is paid at the appointed banks or through a mobile banking platform after the generation of an electronic payment slip. Banks are located within the terminals. Note, that the online payment slips once generated by the Customs Officer will be visible and available at the bank for ease of payment.
So, is the Kenyan on X correct in saying that Kenyans are made to pay for the electronics they back into the country with? Yes. Right. But where is the problem? Many Kenyans, upon landing at JKIA fail to declare some of the gadgets/goods they are coming back with, including the actual prices they used to acquire them.
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