Tax –Mitumba prices will be going up after government today reviewed import duty on the second-hand clothes.
The taxman is looking forward to making sure charges for the products are aligned to the current economic situation.
Border and Customs Department could be under-taxing mitumba clothes and shoes due to under declaration of weight and an increase of the exchange rate of the Kenyan shilling against the US dollar.
Profiling and Targeting Chief Manager Grace Lekasi said the adjustment is inevitable if Kenya has to hit tax targets.
“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,” Lukasi added.
In that regard, Customs department has adjusted delivery charges for the products on free on board (FOB) shipment to new tariffs so that to stop importers from under-paying taxes for their consignments.
