KRA signs MOU with Zanzibar Board
Kenya Revenue Authority (KRA) and Zanzibar Revenue Board (ZRB) on 5th December in 2008 signed a Memorandum of Understanding in furtherance of efforts in Customs administration.
Under the MOU the two revenue authorities shall provide assistance through exchange of information that is relevant to the administration and enforcement of the national laws of the Republic of Kenya and Zanzibar concerning taxes covered by the MOU.
The MOU was signed between KRA’s Commissioner General Mr. M.G. Waweru and the ZRB Commissioner Mohammed Hashim Ismail in a ceremony held in Zanzibar.
The MOU arose following efforts by KRA to deter possible diversion of petroleum products destined for Zanzibar, into the local market. Diversion of goods destined for export into the local market through various channels, is one of the challenges facing revenue administrations within the region and beyond.
KRA has put in measures to address these challenges to ensure the Government gets all the revenue due, among them information exchange with revenue authorities within the region.
Kenya approached the ZRB because, as much as KRA has an MOU with Tanzania Revenue Authority (TRA) on exchange of information, there is likelihood that some unscrupulous business people may be evading paying tax by using the Zanzibar route as an outlet.
ZRB responded positively citing the likelihood of cloves, a key export commodity for Zanzibar, being smuggled into Kenya and other destinations due to lack of relevant information by the two revenue bodies.
Following this, the two bodies agreed to share information in all areas of customs administration to seal possible revenue leakage loopholes.