Effect of Excisable Goods Management System on the Revenue Collection at Malindi Tax Service Office
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Date
2020
Authors
Lenga, Lorraine
Journal Title
Journal ISSN
Volume Title
Publisher
KESRA/JKUAT - Unpublished research project
Abstract
Coast Bottled Water Manufacturers Association has estimated that KRA loses 4.7 litres for every five-litre bottle to the unscrupulous dealers, excise stamps are swapped. It was in the background of this statement that researcher sought to establish the effect of excisable goods management system on the revenue collection in Malindi TSO. The study was guided by the following specific objectives: to determine the effect of product marking on revenue collection in Malindi TSO, to examine the effect of tracing on revenue collection in Malindi TSO and to assess the effect of verification on revenue collection in Malindi TSO. The study will be of great benefit to researchers and academicians, Kenyan government and more specifically KRA and finally other policy makers. To provide the basis of the study, the theory of reasoned action, technology acceptance model and dynamic capabilities theory were used. The study adopted descriptive research design where 55 KRA employees in Malindi were targeted. The sample size was generated using Yamane’s formula and a stratified random sampling technique was used to select the respondents. The study will use structured questionnaires which was distributed to the study respondents. Collected questionnaires was analysed using SPSS version 24, where both inferential and descriptive research design was used. The study relied on 43 returned questionnaires for data analysis and to base the study findings on. It was found that product marking significantly and positively affects revenue collection on excisable goods in Malindi. The study further determined that an improvement in product marking would lead to improvement on revenue collection on these goods. Also, the study found out that, that excisable goods tracing significantly and positively affects revenue collection on excisable goods in Malindi. The study also established that an improvement excisable goods tracing would lead to an increase in revenue collection on the excisable goods. Finally, the study established that excisable goods verification significantly and positively affects revenue collection. The analysis further showed that an improvement in excisable goods verification would significantly contributes to an increase in revenue collection on excisable goods in Malindi. The study concluded that EGMS constructs (product marking, excisable goods verification and excisable goods tracing) positively and significantly affects revenue collection on excisable goods in Malindi. The study recommended that to address issues of monitoring and tracking of excisable goods, there is need for KRA to ensure that they use work in collaboration with manufacturers of these products on the adoption of latest tracking gadgets that cannot be easily tampered with. There is also need for KRA to hire more staff to ensure excisable goods and the production process of these products are adequately assessed before being released for export or local market usage.
Description
Tax Administration
Keywords
Excisable Goods Tracing, Excisable Goods Verification, Product Marking, Revenue Collection