KRA loses Sh2 billion on automation of bank services - PwC report
The Times Tower in Nairobi which houses the headquarters of the Kenya Revenue Authority (KRA). A court has ordered the Kenya Revenue Authority to pay a former employee Sh15 million in compensation for unlawfully dismissing him before rescinding the decision and retiring him in the public interest.
Irrecoverable VAT paid by banks declined by 16.2 per cent to Sh7.8 billion last year on the effect of increased automation and digitisation of banking services.
Banks mainly incur the tax while running physical banking halls because they have to pay levies when footing service bills such as rent.
Accelerated automation of services by banks has dealt the taxman a big blow, denying it over Sh1.5 billion in taxes in 2021.
A new report released by consultancy firm PricewaterhouseCoopers (PwC) on behalf of the Kenya Bankers Association shows that irrecoverable value-added tax (VAT) paid by banks declined by 16.2 per cent to Sh7.8 billion last year on the effect of increased automation and digitisation of banking services.
