JOHANNESBURG, October 28 (ANA) - The ongoing illicit cross-border smuggling of beer from Uganda is costing Kenya millions of dollars due to the loss of potential taxes and a big difference in rates.
Beer on the Ugandan side of the Busia border between the two countries cost half of what it did on the Kenyan side, a situation that had proven uncompetitive for bars and restaurants on the border towns, driving down sales and taxes, the Daily Nation reported.
The difference in prices has led to some bar owners smuggling beer across the porous border to sell at the same rate it is sold in Uganda to win customers and stay afloat.
Kenya’s Revenue Authority (KRA), the Anti-Counterfeit Agency, and the Kenya Association of Manufacturers have teamed up to deal with the issue but were informed during a conference on illicit trade in Busia that the rising incidence of smuggling of alcohol from Uganda would be hard to deal with due to tax rate differences.
“Because there is no harmony in the taxation regimes between the two countries, we have seen an influx of the alcoholic drinks, some of which are not very safe for consumption, being smuggled even through the water bodies,” said KRA regional surveillance officer Vincent Kimosop.
The Kenya Association of Manufacturers said bridging the gap between the taxation regimes would help reduce the problem.
- African News Agency
