The Kenya Revenue Authority (KRA) has clarified that the revised minimum yield of Ksh.3.2 million on containers carrying general consolidated cargo is not the actual tax payable by traders.
In a statement issued on Thursday, August 27, KRA said the minimum yield is a risk-management reference point used to facilitate the simplified clearance of consolidated cargo imported by small-scale traders.
The tax authority explained that the actual customs value and tax liability of goods would continue to be determined based on the nature, value and classification of the goods, in accordance with applicable customs valuation and tax laws.
KRA noted that the valuation of imported goods is governed by the East African Community Customs Management Act and is based on the transaction value of the goods, in line with the World Trade Organization Customs Valuation Agreement.
