KRA suspends all tax relief payments until further notice in order to allow “KRA to audit and enhance the tax relief processes and procedures” KRA says that they have granted tax reliefs & incentives of KES 610 Billion in the past 5 years.
According to the statement from Board Chairman Mr.Athony Ng’ang’a Mwaura the taxman is in a bid to enhance the current processes related to payments of tax refunds,exemptions,waivers and abondonments the KRA with the conjunction with National Treasury& Economic Planning effective from 28th February 2023 until further notice.
The move for suspension came after public concern iniating the restructure rules and procedures governing tax exemptions.“The current suspension and ongoing review of tax reliefs is aimed at increasing the impact of tax expenditure on economic growth.This will be achieved through minimising tax expenditure and aligning with international standards and practices for betterinterna revenue.”Read the statement from Board Chairman
However it adds that the improvement is part of the Government’s strategy to seal through the tax leakages and to enable KRA to mobilise more taxes towards the country’s economic growth.Its also the part of aggressive revenue mobilisation plan wth the aim of of enhancing revenue collection and redirecting resources to finance prority growth-supporting programmes hence powering the Bottom -up Transformation Agenda (BETA).