The Kenya Revenue Authority (KRA) has revealed that it has netted Sh3.4 billion in revenue from its ongoing tax amnesty programme that ends next June.
Domestic taxes department chief manager Caroline Rotich said more than 17, 000 taxpayers have applied for tax amnesty and are expected to remit Sh10.5 billion. The taxman targets to collect more than Sh51 billion from the debts accrued in the period.
“More than 17,000 taxpayers have applied for the tax amnesty which commenced on September 1, 2023, and we expect the number to immensely grow as we continue to create awareness amongst taxpayers,” she said.
The Finance Act 2023 introduced a tax amnesty for interest and penalties on tax debt by inserting Section 37E into the Tax Procedures Act 2015. The amnesty took effect on September 1.
Through the programme, taxpayers without outstanding principal tax for the period to December 31, 2022, but who have penalties and interest qualify for the waiver.
The taxpayers, who have outstanding principal tax to that period but commit to paying the tax by June 30, 2024, also qualify for the tax amnesty.
The KRA says it has identified 2.8 million taxpayers with penalties and interest who qualify for the tax amnesty programme. It adds that qualified taxpayers will be entitled to automatic waiver of the penalties and interest related to that period and will not be required to make an amnesty application.
The KRA has been tasked to collect Sh2.495 trillion in tax revenue in the financial year 2023/24 to fund President William Ruto’s debut budget of Sh3.67 trillion.
The taxman collected Sh196.68 billion in tax revenue in September, bringing its collections for the first quarter of the financial year 2023/24 to Sh514.26 billion, a growth of 6.33 percent compared to the same quarter last year.
This is the latest tax amnesty programme by KRA following the introduction of the Voluntary Tax Disclosure Programme (VTDP) through the Finance Act of 2020.
Through the programme that commenced in January 2021, all taxpayers who had hidden tax arrears in the five years to June 30, 2020, qualify for the amnesty.
To accelerate the VTDP, firms that made applications through the programme in 2021 and paid their tax liabilities during the year were given a full remission of the interest and penalties due on their tax arrears.
Meanwhile, those that applied and paid their arrears in 2022 got a 50 percent remission on penalties and interest while those that will pay this year will get a 25 percent relief.
