The Kenya Revenue Authority (KRA) has suspended the payment of refunds, exemptions, waivers and abandonments of tax relief to enhance the process.
In a statement on Tuesday, February 28, KRA said it has granted reliefs and incentives totalling to KSh666 billion, with an average of Ksh122 Billion per annum.
“The move to suspend payment of tax reliefs allows KRA to audit and enhance the relief process and procedures,” the taxman said in the statement.
It added: “KRA continues to comply with the law by assessing and processing the tax reliefs during this process.”
Additionally, the announcement noted that the suspension and the ongoing review of tax reliefs was also aimed at increasing the impact of tax expenditure on economic growth.
“This is part of the aggressive revenue mobilisation plan aimed at enhancing revenue collection and redirecting resources to finance priority growth supporting programmes.
“It will be achieved by minimising tax expenditure and aligning it with international best practices for better internal revenue,” the authority added.
KRA further revealed that in five years, it had granted tax reliefs and incentives of up to Ksh610 billion averaging to Ksh122 billion every year.
In addition, it noted that the changes in the processes would ensure equal processing of tax reliefs and offer permissible issuance of tax exemptions.
“This move is aimed at powering the Bottom up Transformation Agenda(BETA).
“KRA will continue working closely with taxpayers to resolve arising issues for ease of tax compliance,” the authority added.
