KRA tech error gifts firm Sh500m

Deputy Chief Justice Philomena Mwilu. FILE PHOTO | NMG

A rice importer has gotten away with Sh500 million unpaid tax after the Kenya Revenue Authority failed to calibrate their systems to distinguish countries of origin.

Export Trading Company ltd paid a preferential tax rate of 35 per cent on imported rice instead of 75 per cent due to a technical error by the taxman, by failing to distinguish imports from Pakistan, which enjoyed the lower rate compared to other countries.

PAYE Tax Calculator

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