The Kenya Revenue Authority (KRA) Commissioner-General, Humphrey Wattanga, is facing mounting pressure from the National Assembly to provide answers regarding allegations of a significant tax loss in a palm oil import deal involving Louis Dreyfus Company (LDC).

A parliamentary committee has issued a seven-day ultimatum to Wattanga to appear before them and address claims that the country may have lost up to Sh62 billion in taxes due to alleged misdeclaration of goods by LDC.

The Finance and National Planning Committee of the National Assembly had summoned Wattanga to appear on Tuesday, but he failed to do so.

Instead, he requested to postpone his appearance until November 26, 2024, a move that sparked outrage among committee members.

Ainamoi MP Benjamin Lang’at, the committee's vice chairman, accused the KRA boss of dereliction of duty and warned of potential sanctions if he fails to comply with the summons.

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Lang’at emphasized the committee's role as an oversight body and demanded that Wattanga appear before them next week without fail.

“As an oversight arm of the government, this committee directs that the KRA management appear before this committee on Tuesday next week without fail or face the necessary sanctions,” Lang’at stated.

“It is a criminal matter that the country could be losing trillions in taxes through misdeclaration of goods.”

The committee's decision to summon Wattanga follows the submission of documents alleging that LDC companies may have underpaid taxes on palm oil imports through the Mombasa port.

The committee is seeking detailed information on the volume of palm oil imported, taxes paid, and related documentation to investigate the matter thoroughly.

The committee has specifically requested details on the total cargo volume of palm oil imported by LDC Asia PTA between February 23, 2023, and June 26, 2024, including the specific types of palm oil products. 

Additionally, the committee wants to know the total taxes and fees paid by LDC Asia PTA during this period.

To support their investigation, the committee has also requested copies of all import declaration documents, including port health reports, Kenya Bureau of Standards (KeBS) reports, bills of lading, and cargo manifests for the 120 cargoes of palm oil imported by LDC Asia PTA during the specified timeframe.

Furthermore, the committee is seeking a list of consignees for all the palm oil cargo volumes imported by LDC Asia PTA and other companies involved in the palm oil trade, such as LDC- Kenya Limited, Acee Limited, Mazeras Oil Limited, and Vipingo Industries Limited.

The committee's investigation aims to shed light on the potential tax losses and ensure that the government is receiving its rightful share of revenue from palm oil imports.

The outcome of this investigation could have significant implications for the KRA and the country's tax administration.