More than 227, 000 taxpayers have benefitted from waiver of penalties and interest by the Kenya Revenue Authority.
- The penalties and interest waived so far amounts to Kshs 209 billion.
- Taxpayers have, in turn, paid a total of Kshs 14.5 billion in principal taxes, against a target of KShs. 50 billion before the end of June 2024.
- The tax man had pointed out that 2.8 million taxpayers had accrued interests and penalties thus eligible for the amnesty.
Through the Finance Act 2023, KRA introduced tax amnesty programme that allows taxpayers to apply for waiver of penalties and interest accrued until December 31, 2022.
“KRA reminds taxpayers with outstanding principal taxes to take advantage of the amnesty programme,” KRA said in a statement. The taxman also encouraged taxpayers with ongoing tax disputes to consider out of court settlements, which is less laborious and time consuming.
The waiver is part of efforts to encourage tax compliance and move KRA closer to meeting its ambitious revenue targets. The taxman is in the second phase of its 8th Corporate Plan, which is focused on revenue mobilisation and aimed to collect KShs. 6.8 trillion in the 2021/22 and 2023/24 financial years. The Treasury projects that the 2024/2025 Financial year will require a budget surpassing Ksh. 4 trillion amidst macroeconomic pressure and profit decline among taxpayers.
KRA Unveils Online Auction, Tax Amnesty – Kenyan Wallstreet
