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KRA nets Sh1 billion from tax amnesty scheme


Times Tower, the Kenya Revenue Authority offices. PHOTO | NMG

The Kenya Revenue Authority (KRA) has collected Sh1 billion from an amnesty programme that grants businesses and individuals relief on penalties for unpaid taxes.

Commissioner for Domestic Taxes Rispah Simiyu said the businesses and individuals have paid Sh1 billion from Sh2.7 billion already declared in the seven months to July.

The amnesty that started in January, is a three-year programme in which the KRA has offered up to 100 percent interest and penalties waiver on taxes that have not been paid in five years.

The taxman is betting on the Voluntary Tax Disclosure Programme (VTDP) to bring more individuals and firms to the tax bracket in the war on evasion.

“More than 300 applicants had applied for relief under the VTDP. The total revenue implication from the applications received amounted to more than Sh2.7 billion, with a collection of around Sh999 million,” Ms Simiyu said in an op-ed in the Business Daily.

KRA last month automated the programme, allowing businesses and individuals to apply for the relief through the iTax portal.

Taxpayers had for the past six months been manually applying for the amnesty, a tedious process that KRA said slowed down efforts to rope in more businesses and individuals.

Taxpayers, who declare their pending liability and pay within one year, shall enjoy a 100 percent interest and penalty waiver.

Those who voluntarily disclose and pay the pending tax liability within the second year of the programme will receive remission of 50 percent while payments in the third year will attract a 25 percent relief.

The KRA raised Sh1.67 trillion in the year ended June and is banking on the amnesty to collect Sh1.9 trillion in by next June.