Retailers clash with KRA on tax system

Retail Trade Association of Kenya Chairman Willy Kimani (right) and CEO Wambui Mbarire during a members forum in January. PHOTO | DIANA NGILA

Supermarket owners claim that the Kenya Revenue Authority (KRA) has rejected billions of shillings in tax input claims over a new automatic value-added tax (VAT) computation system.

The taxman had claimed that inconsistencies between purchase and sales invoices the traders submitted have seen them claim billions of shillings on input fraudulently since the claims are bulky, forcing the taxman to set up the Value Added Auto Assessments (VAA) that retailers are now terming as impractical.

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