New taxes importers will pay for mitumba clothes/shoes per kg

Kenyans will have to dig deeper into their pockets to acquire the popular and widely available second-hand clothes as KRA moves to align import duty on mitumba with EAC tariffs. 

Profiling and Targeting chief manager Grace Lekasi said the adjustment follows revelations that the Border and Customs Department could be levying lower taxes on mitumba clothes and shoes due to under declaration of weight and an increase of the exchange rate of the Kenyan shilling to the US dollar.

“Data analysed from January 2022 indicates that less than 19 per cent of the declarations comply with the minimum acceptable weights. Consequently, the department could be levying lower taxes in approximately 80 per cent of the declarations,” Lekasi said.

“This may result in a loss of between Sh150,000 and Sh200,000 per 40-feet container,” she added.

As a result, Lekasi said the Customs department has adjusted delivery charges for the products on free on board (FOB) shipment to new tariffs to avert the risk of importers paying lower taxes on the products due to weight under declaration.    BY THE STAR