The Kenya Revenue Authority (KRA) has announced tax exemption for Muslims dates during this year’s Ramadhan period. In an internal dated January 29, 2024, the Kenya Revenue Authority(KRA) noted that the dates to be considered for exemption must have been imported and cleared between March 1, 2024, to April 20, 2024.
The Commission granted authorization for the tax-free importation and clearance of dates during the holy month. However, the duty-free importation of dates comes with the condition that the importers or clearing agents apply for an exemption processing code on the Integrated Customs Management System (ICMS).
KRA also noted that the memo followed a letter by National Treasury and Economic Planning Cabinet Secretary Njuguna Ndung’u dated January 26, 2024. The CS stated that the move was a gesture of manifestation of goodwill to the Muslim community.
The Remissions & Exemptions Office will oversee the approval of the processing code and ensure compliance with the exemption conditions. The directive states that all importers and clearing agents of the dates will apply on ICMS for an exemption processing code that will exempt thereby exempting 100 per cent import duties and all other taxes, fees and levies on the dates consignment.
Once the specified period lapses, these records will be submitted to the Permanent Secretary, National Treasury, with a copy to the Deputy Commissioner Revenue & Regional Coordination.
It is important to note that the duty-free importation of dates will expire on 20th April 2024. Any imports arriving after this date will attract the full duties, taxes, fees, and levies.
The policy will see the government absorbing the import declaration fees and railway development levy on the imported dates.