TRA loses Sh1.9bn tax case over beef, poultry imports from Kenya

Dar es Salaam. An importer of pork beef and poultry product will not pay Sh1.9 billion taxes after a tax tribunal declared that the amount demanded by the Tanzania Revenue Authority unlawful.

The Tax Revenue Appeals Board (Trab) sided with Bright Choice Limited that the imports from Kenya were not subject to import duty under remission scheme meant to promote export.

“The demand notice issued by TRA is unlawful and the amount assessed is null and void. The applicant has no any tax liability,” Trab declared recently.

The tax dispute arose after the taxman conducted a post clearance audit review to satisfy itself as to the accuracy and authenticity of declarations in the books and records of Ms Bright Choice Limited.

TRA claimed it discovered that the importation of the assorted processed beef pork and poultry product manufactured by Farmer’s Choice Limited (FCL) of Kenya were not to enjoy tax reliefs under East African Community (EAC) duty remission scheme.

The system binds producers benefiting under the scheme to produce goods for export outside EAC countries. Bright argued that the goods used to manufacture the goods imported into Tanzania did not incorporate goods imported by FCL under the duty remission scheme and the relevant duties were paid in Kenya.

TRA insisted is that the imports by Ms Bright from Kenya were manufactured from inputs imported under the duty remission scheme, should have not been sold within the EAC.

THE CITIZEN TANZANIA: