More than 500,000 Kenyans have paid a total of KSh 20.8 billion in principal taxes, up from KShs 14.5bn in February, as the June tax amnesty deadline approaches, according to the Kenya Revenue Authority (KRA).
- To foster compliance, the taxman has waived more than KSh 200 billion in penalties and interests since last year.
- More than Ksh 28 billion in taxes accrued before December 2022 remains unpaid, arising from tough economic pressures and punitive penalties.
- With a budget projection of about Ksh 4 trillion for the next financial year, KRA is under immense pressure to mobilize revenue.
“There will be no amnesty, waiver, or write-offs on penalties and interests after 30 June 2024,” KRA said in a statement.
The tax amnesty program has only achieved 40% success, and with less than three months to go, is likely to fall short of its goal. Concerted efforts to simplify tax invoicing via eTIMS hit a snag after KRA realized that very few businesses had transitioned to the system before the March 31 deadline. Out of almost a million VAT taxpayers, eTIMS registered only about 180,000.
Moreover, eTIMS lite which was created for small businesses as an attempt to broaden the tax base has not gained any significant traction. KRA sought to recruit tax officers, dubbed the Revenue Service Assistants (RSAs), skilled in paramilitary training to enforce compliance by collecting taxpayers’ data.
