BAT Kenya has been put on the spot over an alleged tax evasion amounting to more than two million dollars for two years.
A report released by the Tax Justice Network indicates that BAT is shifting profit between entities in low and middle income countries.
The report dubbed Ashes To Ashes says that KRA may have received up to 2.7 Million dollars less in revenue in 2015 and 2016.
The Kenya Tobacco Alliance is now appealing to the National Treasury to investigate BAT over the allegations.
The alliance has further criticized the government’s spending in mitigating the effects of tobacco in Kenya.
“From the Tobacco taxes that we are getting for every shilling that the government gets, it uses about three to four shillings to mitigate the effects of tobbacco. So it literally does not make sense.” said Joel Gitali Chairman KETCA.
“BAT evades tax by using its multinational corporate structure to pay the minimum amount of corporate tax in countries that most need the revenue and bribing policy makers such as Kenya Revenue Authority thus robbing the country of vital resources to pay for public services,” he noted.