The Institute of Certified Public Accountants of Kenya (ICPAK) has backed the Treasury’s bid to review the Income Tax, saying it will ease tax administration in the country and benefit taxpayers.
ICPAK national vice chairman Julius Mwatu said Wednesday that the initiative was long overdue.
“The CS (Henry Rotich) in the budget statement for 2015 identified the review of the Income Tax Act as a priority reform to be completed by September 2015. It is, however, doubtful that the new Income Tax Act will be enacted in this financial year,” said Mr Mwatu.
“This has been identified as a policy intervention intended to actualise the realisation of the Sh1.3 trillion revenue target in the Financial Year 2016/17. As a key stakeholder in taxation and fiscal matters, the ICPAK wishes to confirm its support for this initiative.”
In 2013, the government started a review of various tax laws —Value Added Tax (VAT) and Excise Tax Act- partly to comply with the 2010 Constitution. Only the Income Tax Act is yet to be reviewed.
Mr Mwatu, who spoke on the sidelines of ICPAK’s Annual Tax Conference in Mombasa, called for more effort in streamlining the iTax platform to ensure efficiency.
“The institute further supports the ongoing efforts by Kenya Revenue Authority to sensitise taxpayers on iTax. This effort should be enhanced with the support of other stakeholders so that every taxpayer is enlightened,” he added.