KRA cargo tracking system sounds death knell for tax evaders

PHOTO:COURTESY

Kenya Revenue Authority (KRA) has launched a cargo tracking system aimed at sealing tax evasion loopholes all the way to Rwanda and Uganda.

The Regional Cargo Tracking System (RECTS), a brainchild of the 2014 Northern Corridor Heads of State Summit in Kigali, will also see the three countries enjoy a seamless flow of cargo through a joint e-monitoring system.

KRA said yesterday the new system, which will replace the existing Electronic Cargo Tracking System (ECTS) where monitoring is done independently through stand-alone platforms, is also expected to eliminate cases of cargo diversion.

RECTS has the ability to trigger an alarm whenever there is a diversion from the designated route or an unusually long stopover.

FAIR TRADE

The old system, according to KRA, forced its officers to toggle between screens, making the process tedious and easy to manipulate.

“Over the years, the cargo volumes along the corridor has been increasing steadily. Challenges such as revenue leakages, unfair competition in the business environment and increased costs of doing business necessitated a review of the current ECTS,” said KRA Customs and Border Control Commissioner Julius Musyoki at a press briefing in Nairobi.

Mr Musyoki further explained that the new system will facilitate quick movement of cargo without compromising customs security controls.

The project has been financed by the United Kingdom Department for International Development through Trade Mark East Africa (TMEA).

TMEA Chief Executive Officer Frank Matsaert said RECT’s efficiency is expected to promote fair terms of trade by creating a level playing field for both importers and local industries.

The system is expected to lower the cost and time of doing business, with central monitoring centres in Nairobi, Kigali and Kampala