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Taxman issues new rules for ETR imports
Small firms yet to install new ETRs. PHOTO | POOL
The taxman has completed working on guidelines for the importation of modern electronic tax registers (ETRs) in the latest effort to net new taxpayers and curb revenue leakages.
The new version of the register is called the Electronic Fiscal Device (EFD).
KRA says the guidelines for the GPRS-enabled devices have been issued to suppliers and manufacturers ahead of full implementation from March but a section of suppliers said it was yet to receive them.
General Packet Radio Service (GPRS) enables KRA to locate position and confirm working of an ETR, making monitoring easy.
The real-time monitor has been tested in establishments including Tuskys Supermarkets. The Authority has also reached agreements with Safaricom and Airtel to provide modems.
“KRA will sign a Memorandum of Understanding with suppliers. We have also engaged Safaricom and Airtel and will be piloting the programme until December before full-scale deployment between March and July,” said Kennedy Onyonyi, the KRA spokesman.
Suppliers, however, are protesting at delays in getting the guidelines, saying they were developed last April.
“We cannot import the machines until we get direction from KRA,” said an official at Petken.
Officials at Copy Cat, a leading supplier, said they have mobilised modems to activate GPRS in existing machines.
“The transition does not affect existing machines. Businesses can still use the machines normally,” said an official, who asked to remain anonymous.
Other licensed suppliers of the gadgets are Awal Ltd, Total Solutions, Electronics Technology Limited, Paypoint Solutions, Express Automation Ltd and Advatech Office suppliers. The machines can be shipped from Turkey, Japan or Bulgaria.
Value Added Tax-liable firms lost a battle with KRA over their introduction when politicians failed to side with them. Although the gadgets were introduced in 2005, Finance minister Njeru Githae said VAT collection was still below par.
Most machines have almost exhausted their lifetime of five years or 1,800 reports.
