dc.description.abstract |
The introduction of the new excise stamps with security features is in line with the
provisions of the Excise Duty (Excisable Goods Management System) Regulations,
2017 that requires all excisable products manufactured in or imported to Kenya, with
the exception of motor vehicles, be affixed with excise stamps. The new generation
stamps have enhanced security features leveraging on technology which are meant to
deter counterfeiting. Excisable goods management system regulation was formulated
in Kenya to deter counterfeiting, facilitate tracking of goods, enable accounting and
facilitate authentication of stamps affixed on excisable goods. However, despite the
introduction and use of excisable goods management system, excise duty non-
compliance in Kenya remains high. Therefore, this study sought to
investigate the Effect of Excisable Goods Management Systems (EGMS) on Excise
Duty collection in Domestic Taxes Department, Enforcement Division, Kenya
Revenue Authority. The specific objectives of the study were to determine the effect
of verification of stamps, application procedure and excise stamp security features
on excise duty collection in Domestic Taxes Department, Enforcement Division at
Kenya Revenue Authority. The study was anchored on three theories, namely;
Technology Acceptance Model, Unified Theory of Acceptance & Theory of
Reasoned Action. The study employed explanatory research design. The target
population of the study was 214 registered importers and manufacturers of excisable
goods in Kenya as well as staff working in Domestic Taxes Departments-
Enforcement Division and a sample size of 139 respondents. This study used
stratified and simple random sampling in the selection of the 214 respondents from
the target population. This study used of both primary and secondary data.
Secondary data to be obtain from the annual reports of Kenya Revenue Authority.
Close ended questionnaires were used in this study to collect the primary data. The
research instrument was generated both quantitative and qualitative data. The data
was analyzed using descriptive and inferential statistics to determine the association
between variables, with the measurement of variables based on 5-point Likert Scale.
Correlation and regression analysis provided an understanding of the relationship
between the study variables. The study was analyzed by use of inferential and
descriptive statistics. The study results showed that regression of coefficients
showed that verification of stamps, stamps application procedures and stamps
security features and excise duty collection were positively and significantly related
(β=0.454, p=0.000). (β=0.257, p=0.000). and (β=0.468, p=0.000) respectively. From
the study findings, verification of stamps, applications procedures and stamps
security features had positive and significant relationship with excise duty revenue
collection excise duty collection in Domestic Taxes Department, Enforcement
division, Kenya Revenue Authority. This study therefore recommends that
enforcement of the requirements of verification of stamps including adequate light
for verification of stamps so as to ensure impartial verification of stamps and
identification of counterfeit stamps. In addition, study recommends that the
management of Kenya Revenue Authority should reduce the bureaucracies involved
in the issuance and application of stamps so as to enhance compliance. Furthermore,
the study therefore recommends that the management of Kenya Revenue Authority
should enhance the features of excise stamps to prevent counterfeiting |
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