KRA nets Sh3.4bn revenue from tax amnesty scheme
Times Tower in Nairobi, the Kenya Revenue Authority headquarters.
What you need to know:
- The tax agency says it has identified 2.8 million taxpayers who have penalties and interest and qualify for the tax amnesty programme.
- KRA has been tasked to collect Sh2.495 trillion in tax revenue in the financial year 2023/24 to fund President William Ruto’s debut budget of Sh3.67 trillion.
The Kenya Revenue Authority (KRA) has revealed that it has netted Sh3.4 billion in revenue from its ongoing tax amnesty programme that ends in June next year.
The Finance Act of 2023 introduced a tax amnesty for interest and penalties on tax debt by inserting Section 37E into the Tax Procedures Act, of 2015. The amnesty took effect on September 1, 2023.
Through the programme, taxpayers who have no outstanding principal tax for the period to December 31, 2022, but have penalties and interest qualify for the waiver.
Further, taxpayers who have outstanding principal tax to that period but commit to paying the tax by June 30, 2024 also qualify for the tax amnesty.
KRA Chief Manager Domestic Taxes Department Caroline Rotich said more than 17, 000 taxpayers have so far applied for tax amnesty and are expected to remit Sh10.5 billion.
In total, KRA targets to collect over Sh51 billion from the debts accrued in the period.
“More than 17,000 taxpayers have applied for the tax amnesty which commenced on September 1, 2023, and we expect the number to immensely grow as we continue to create awareness among taxpayers,” said Ms Rotich.
The tax agency says it has identified 2.8 million taxpayers who have penalties and interest and qualify for the tax amnesty programme. It adds that qualified taxpayers will be entitled to automatic waiver of the penalties and interest related to that period and will not be required to make an amnesty application.
KRA has been tasked to collect Sh2.495 trillion in tax revenue in the financial year 2023/24 to fund President William Ruto’s debut budget of Sh3.67 trillion.
The taxman collected Sh196.68 billion in tax revenue in September, bringing its total collections for the first quarter of FY2023/24 to Sh514.26 billion. This translates to a growth of 6.33 per cent compared to the same quarter last year.
This is the latest tax amnesty programme by KRA following the introduction of the Voluntary Tax Disclosure Programme (VTDP) through the Finance Act of 2020.
Through the programme that started in January 2021, all taxpayers that had hidden tax arrears in the five years to June 30, 2020, qualify for the amnesty. The three-year programme ends on December 31, 2023.
