KRA clarify move to suspend tax reliefs after uproar
The Kenya Revenue Authority (KRA) has clarified on the suspension of tax reliefs saying that it has only suspended tax reliefs in the form of refunds, waiver exemptions, and tax abandonments.
The taxman clarified that that tax relief payments on salaries and other charges have not been scrapped and that current relief applications that have been submitted will still be processed.
“KRA acknowledges all the requests from the statement on the suspension of tax reliefs. It is important to note that the statement clarifies on the suspension of provision of reliefs, particularly with reference to refunds, waivers exemptions, and abandonments,” the taxman stated.
“This does not mean that the reliefs have been scrapped. The scraping of reliefs can only be done through an amendment of the law,” added KRA.
According to KRA, the suspension is meant to ensure fairness, equity, and effectiveness in the implementation of the legal provisions.
“The current suspension and ongoing review of tax reliefs is also aimed at increasing the impact of tax expenditure on economic growth. This will be achieved through minimising tax expenditure and aligning it with international best practices for better internal revenue,” KRA stated.
The move follows uproar from Kenyans after yesterday’s announcement by the taxman to suspend all tax reliefs indefinitely.
According to the taxman, the move to suspend all tax reliefs was to allow it to audit and enhance the tax relief processes and procedures.
The move came in the wake of concerns from taxpayers, initiating the need to restructure rules and procedures governing tax exemptions.
