KRA on course to net Sh5 billion in tax amnesty plan
A total of 325 Kenyans took advantage of the voluntarily disclose their hidden tax obligations under Kenya Revenue Authority’s Voluntary Tax Disclosure Program (VTDP) as of the end of August.
If the taxman approves their applications, the Kenya Revenue Authority (KRA) is expecting to collect Kes3.4 billion in revenues.
KRA Commissioner General Githii Mburu says the taxman expects to see more applications and is in course to meet its target of raising Kes5 billion from the program in its first year of roll out.
In the nine months to September, KRA disclosures show that the authority collected Kes1.995 billion under the amnesty programme that gives businesses and individuals relief on penalties for their unpaid taxes.
“We’ve seen some good progress on that area. We had an early estimation of about Kes5 billion for the whole year and I think we are progressing very well. Ours is to encourage taxpayers to come forward and take advantage of this particular program and many Kenyans are coming forward,” Mr Mburu noted yesterday.
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Rolled out in January, this year, and expected to run until 2023, the taxman’s VTDP is billed to loop in more taxpayers, from individuals to companies, as the war on tax evasion in Kenya intensifies.
Under the amnesty programme the taxpayers, who declare their liabilities and choose to honor them in a year benefit from 100 per cent waiver on interest and penalty.
However, the taxpayers who pay within their second year get 50 discount on interest and penalty while those who come in the third year only get 25 per cent discount.
The VTDP does not provide any respite for individuals and companies that are under any form of tax investigations by the authority.
