The question raised at Min 23 on the increase of the stamp cost has been "politically" answered. The stamps (not the tax) were due to increase last July because the Service Provider SICPA had a relevant credit with KRA (20M$) that the Agency hoped to have the taxpayers swallow through stamp cost hikes. The industry revolted, then SICPA proposed the transfer of all EGMS assets to KRA and remain as only tax stamps supplier proposing about a 50% break on stamp costs. KRA returned the favour floating a tender for a new service provider in May 23 that only SICPA could win. In the end, the collection of Excise is so relevant to KRA that they could not afford the luxury of a new provider with new technology, implying obvious blank times in collection due to deployment. If only KRA had paid SICPA in time, the new Service Provider could have been more competitive for taxpayers. For another 3 years SICPA is ruling, not only here, but also Tanzania, Uganda and Malawi. And SICPA were "fined" 60M$ for corruption last year.
The question raised at Min 23 on the increase of the stamp cost has been "politically" answered. The stamps (not the tax) were due to increase last July because the Service Provider SICPA had a relevant credit with KRA (20M$) that the Agency hoped to have the taxpayers swallow through stamp cost hikes. The industry revolted, then SICPA proposed the transfer of all EGMS assets to KRA and remain as only tax stamps supplier proposing about a 50% break on stamp costs. KRA returned the favour floating a tender for a new service provider in May 23 that only SICPA could win. In the end, the collection of Excise is so relevant to KRA that they could not afford the luxury of a new provider with new technology, implying obvious blank times in collection due to deployment. If only KRA had paid SICPA in time, the new Service Provider could have been more competitive for taxpayers. For another 3 years SICPA is ruling, not only here, but also Tanzania, Uganda and Malawi. And SICPA were "fined" 60M$ for corruption last year.