The Kenya Revenue Authority (KRA), in collaboration with the National Treasury & Economic Planning, has decided to suspend all tax relief payments starting from February 28th, 2023, until further notice.
The aim is improve the tax relief process and to allow for an audit and enhancement of the procedures while still complying with the law by assessing and processing the tax reliefs. Also to minimize tax expenditure, aligning it with international best practices, and increase its impact on economic growth.
However, payments will only be disbursed after the completion of the review process.
The suspension was initiated due to concerns raised by taxpayers, which prompted the restructuring of the rules and procedures governing tax exemptions.
KRA believes that the enhancement of the tax relief process and procedures will result in the issuance of permissible tax exemptions while ensuring the equitable processing of tax reliefs.
This improvement is part of the government’s strategy to seal revenue leakage and mobilize more taxes to support the country’s economic growth.
It is also part of the aggressive revenue mobilization plan aimed at enhancing revenue collection and redirecting resources to finance priority growth-supporting programs that power the Bottom-up Transformation Agenda (BETA).
Furthermore, KRA remains committed to providing excellent customer service to taxpayers by working closely with them to resolve any issues that may arise, facilitating ease of tax compliance, and enhancing trust.