KRA to make electronic cargo tracking compulsory

About 1,195 vehicles have been fitted with the tracking devices.

The system enables the owners of transit goods as well as the KRA to track physical movement of goods once they have been removed from the port of Mombasa or from their point of loading for export.

The Government has been losing money as transit goods which have not been charged duty were diverted back into the country.

Some local cargo owners have also lost export goods or received the cargo with broken seals.

Under-declaration of the value of exports or theft of cargo before it reached its destination was also causing cargo owners losses in revenue.

Diversion of goods into the local market also poses unfair competition to buyers who have paid tax such as is the case with fuel that ends up on sale at local filling stations.

The system, which has been in place since April, this year, was officially launched yesterday but some cargo transporters are yet to adopt it.

A device is fitted into the cargo which can then be tracked in real time using a computer.

The fitting is done by the transporters and subsequently certified by KRA.

KRA commissioner general Michael Waweru said on Monday: “The system has been working well and we expect all cargo transporters will install the tracking device.”

Initially the system was only required for transporters of transit goods heading for neighbouring countries but since April, this year, even local exporters have had the option to use the system.

Mr Waweru was speaking to reporters after a ceremony to launch the annual taxpayers week outside KRA offices at Times Towers.

The theme of this year’s taxpayers week is “KRA Online — it is so easy.”

It is in line with the institution’s determination to enhance the use of ICTs as a platform for service delivery.

ECTS is part of the reforms that KRA is undertaking to improve tax administration and efficiency.

The Domestic Taxes department recently introduced the online registration and submission of returns under the Integrated Tax Management System (ITMS) — which is expected to reduce the cost of compliance once fully embraced, Mr Waweru said.

Online services

‘The objective of this year’s taxpayers’ week is to appreciate and honour compliant taxpayers, and to showcase the KRA online services that the authority has put in place to reduce cost of voluntary compliance and enhance revenue collection,” said KRA chairman Marsden Madoka.

The authority will this week be offering tax clinics — where taxpayers learn tax-related matters –, seminars, and tax lectures in schools and colleges throughout the country.

Among the specific services KRA will be offering at taxpayers’ doorsteps, even outside Nairobi, include PIN registration, VAT registration and renewal of drivers ‘licences.