Kenya Revenue Authority eyes Sh50 billion from tax amnesty
The Kenya Revenue Authority (KRA) is targeting to collect Sh50 billion from a 10-month amnesty it has granted to Kenyans who had failed to pay taxes by the end of last year.
KRA Commissioner General Humphrey Wattanga said the amnesty would cater to those penalised for failing to settle their tax dues by December 31, 2022, or who had fines and accrued interest.
“The Finance Act, 2023 has provided for tax amnesty and this is a limited-time offer that allows for the waiver of fees, interest, and penalties on tax debt that was outstanding prior to December 2022. The taxpayers who clear their principal can then apply for a waiver on the principal, interest, and fines,” said Mr Wattanga.
Read: KRA nets Sh9.07 billion in tax amnesty initiative
On August 31 KRA issued guidelines for the amnesty, indicating that amnesty on taxpayers who did not have outstanding principal tax due by December 31, 2022, but had interest and penalties due shall be automatic and taxpayers will not be required to apply, while those with the outstanding principal by end of last year but pay by June 30, 2024, will be required to apply for amnesty.
“The amnesty is applicable to a person with penalties and interest but has no principal taxes owing for periods up to December 31, 2022; and a person who has principal tax accrued up to December 31, 2022, but pays the outstanding principal tax by June 30, 2024.
The application for amnesty be accompanied by a payment plan proposal for the outstanding principal taxes,” KRA stated.
During the launch of the Central Bank of Kenya (CBK) DhowCSD portal on Monday, President William Ruto said the programme was intended to alleviate financial burdens, by assisting taxpayers facing financial challenges related to unpaid taxes.
“From September 1, 2023, to June 30, 2024, you will have the opportunity to settle only the principal tax amount of outstanding tax debts incurred before January 1, 2023, as we are waiving penalties and interest over the nine-month period.
Read: KRA tax amnesty plan expires this weekend
“This initiative alleviates financial burdens and aligns with our commitment to a fair and inclusive economy. Taxpayers with principal tax debt incurred before January 1, 2023, can therefore take advantage of this opportunity. The amnesty programme assists taxpayers facing financial challenges related to unpaid taxes, thus fostering economic growth and inclusivity for all Kenyan citizens,” the President said. BY BUSINESS DAILY
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