KRA warned the offence will be treated as mis-declaration that attracts heavy financil penalty or several years in jail.
The taxman added that those found guilty will also be forced to foot the cost of transferring the cargo to the right address.
The warning comes as disgruntled freighters turn to underhand tactics in efforts to avoid using Madaraka Express freight service, the state-designated cargo transporter for all imports from Mombasa port.
The Kenya Revenue Authority will heavily fine cargo owners who use wrong importer addresses to evade paying customs clearance fees for their goods at the internal container depot in Nairobi.
KRA warned the offence will be treated as mis-declaration that attracts heavy financil penalty or several years in jail.
The taxman added that those found guilty will also be forced to foot the cost of transferring the cargo to the right address.
“Importers are ... cautioned that any use of wrong address shall be treated as an offense of mis-declaration which attracts severe penalties under the East Africa Community Customs Management Act,” taxman said in a gazette notice on Monday.
Under the law, any person found culpable of concealing goods in any way is liable to a maximum jail-term of five years or a fine equal to 50 per cent of the value of goods involved.
The warning comes as disgruntled freighters turn to underhand tactics in efforts to avoid using Madaraka Express freight service, the state-designated cargo transporter for all imports from Mombasa port.
Unscrupulous importers are using falsified Mombasa addresses as the destination of their cargo, thereby escaping paying clearance fees at the Inland Container Depot (ICD) in Embakasi, Nairobi.
The taxman notice is the latest in a move aimed at ensuring that the Madaraka Express cargo transport service runs smoothly, amid discontent from importers and transporters.
The government ordered that all imports coming in through the Port of Mombasa be transported on the SGR to Nairobi in February.
Importers however, through the Kenya International Freight and Warehousing Association, opposed the move saying it was illegal and that transporters should not be forced to use the rail.
The Kenya Railways Corporation offered a promotional tariff to transporters in an effort to diffuse importers’ discontent following the government directive.
The offer runs until June 30 and allows SGR freighters to pay a flat fee of Sh35, 000 for a 20-foot container and Sh40,000 for a 40-foot from Mombasa to the ICD in Nairobi.
The government is set to increase the freight trains to at least 12 from the current four, by the end of the year.
The freight services have cut transit times for cargo from Mombasa to Nairobi to 10 hours, from a previous at least two days that it took aboard lorries.
PAYE Tax Calculator
Note: The results are not exact but very close to the actual.
