Kenya Revenue Authority Suspends Tax Relief
The Kenya Revenue Authority (KRA) has suspended all tax relief payments as of February 28, 2023, in order to improve the process of tax refunds, exemptions, waivers, and abandonments.
The KRA has halted tax relief payments in response to concerns from taxpayers about the rules and procedures governing tax exemptions.
The KRA, in conjunction with the National Treasury and Economic Planning, has suspended tax relief payments until further notice, stating that the move is part of the government’s strategy to collect more taxes and reduce the unexplained loss of collected revenue.
Furthermore, the KRA indicated that the suspension and ongoing review of tax reliefs aim to increase the impact of tax expenditure on economic growth, part of an aggressive revenue mobilisation plan aimed at enhancing revenue collection and redirecting resources to finance priority growth supporting programmes.
The KRA has granted tax reliefs and incentives averaging Ksh122 billion every year, totaling Ksh610 billion over the last five years.
The KRA said that changes in processes would ensure equal processing of tax reliefs and offer permissible issuance of tax exemptions.
The KRA stated that the move is aimed at powering the Bottom-up Transformation Agenda (BETA) and that it will continue to work closely with taxpayers to resolve any issues and make tax compliance easier.
Kenya Revenue Authority Suspends Tax Relief
