In a bid to enhance the current processes related to the payment of tax refunds exemptions, waivers and abandonments, the Kenya Revenue Authority (KRA),in concurrence with the National Treasury & Economic Planning has suspended all tax relief payments with effect from 28 February 2023 until further notice.
In the past five years, KRA has granted tax reliefs and incentives totaling KShs. 610 Billion, wth an average of ksh.122 Billion per annum.The move to suspend payment of tax relief allows kRA to audit and enhance the tax relief processes and procedures.KRA Continues to comply with the law by assessing and processing the tax reliefs during this process. However, Payments WiIl not be disbursed until the end of the process.
The suspension of tax reliefs follows concerns from taxpayers, initiating the Deed to restructure rues and procedures governing tax exemptions. The current suspension and ongoing review ot tax reliefs is also aimed at increasing the impact or tax expenditure on economic growth. This will be achieved through minimising tax expenditure and aligning it with international best practices for better internal revenue.
KRA is optimistic that the enhancement of the tax relief process and procecures will offer a permissible issuance of tax exemptions; it will also ensure equitable processing of tax reiefs.
The improvement is part of the Government’s strategy to seal revenue leakage and enable KRA to mobilise more taxes towards the country’s economic growth.
It is also part of the aggressive revenue mobilisation plan aimed at enhancing revenue collection and redirecting resources to finance priority growth supporting programmes.This move is aimed at powering the Bottom up Transformation Agenda (BETA).
In addition to enhancing trust and facilitation, KRA remains committed to provision of excellent customer service to taxpayers. The Authority will continue working closely with taxpayers to resolve arising issues for ease of tax compliance.
