KRA in talks with Treasury to begin tax review

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Kenya Revenue Authority said the move would ensure that efficient structures are in place to achieve sensitivity to consumers, businesses and investors even as it pursues wider tax nets.

A tax overhaul is in the pipeline after the taxman Tuesday hinted at embarking on the exercise aimed at reviewing the fiscal instruments.

The Kenya Revenue Authority said the move would ensure that efficient structures are in place to achieve sensitivity to consumers, businesses and investors even as it pursues wider tax nets.

“We are having discussions with the Treasury Cabinet Secretary on initiating the exercise,” the Commissioner-General John Njiraini said Tuesday during a breakfast meeting organised by Kenya Private Sector Alliance (Kepsa) in Nairobi.

KRA has set a target of Sh973 billion in revenue collection this year aided by watertight systems after the rollout of an electronic payment platform dubbed iTax in January.

The system, however, last week collapsed inconveniencing medium and large taxpayers who are strictly required to remit their tax using electronic payment.

READ: KRA set to make online filing of taxes mandatory

“We regret that there was system failure last week. But it is now okay,” said Mr Njiraini.

The taxman pledged to clear a huge backlog of tax refunds before year end.

Kepsa chief executive Carole Kariuki estimated that KRA owed its members between Sh25 billion and Sh29 billion in tax refunds.