KRA locks up Sh21bn cash flow for firms on tax relief suspension

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Ensure transparency in the excise stamp tender to reduce tax burden. FILE PHOTO | SHUTTERSTOCK

The Kenya Revenue Authority (KRA) will deny businesses and individuals close to Sh21 billion in liquidity after it suspended payment of tax refunds to pave the way for the audit of reliefs.

On Tuesday KRA suspended indefinitely tax refunds, signalling a tough time for businesses whose working capital is now locked up in the taxman’s accounts as excess payment.

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