Duty-free goods cost KRA Sh30bn foregone tax

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KRA Commissioner General, Humphrey Wattanga. FILE PHOTO | DENNIS ONSONGO | NMG

The importation of duty-free agricultural products denied the government close to Sh30 billion in taxes, reflecting the high cost of cushioning Kenyans against the steep consumer prices.

A report by the Treasury shows that tax expenditures, or foregone taxes, increased three times from Sh15.6 billion in 2021 to Sh45.5 billion last year after waiving duty on agricultural products.

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Note: The results are not exact but very close to the actual.