The National Assembly is set to consider a Bill seeking to allow taxpayers who were locked out of the tax amnesty programme upon its expiry in June 2024 to benefit.
The House is expected to debate the Tax Procedures (Amendment) Bill, 2024 when it resumes from its long recess in the second week of September.
The proposed law, which was published on August 20, 2024 and seeks to extend the amnesty programme to June 2025, was submitted by the cabinet secretary for the National Treasury and Economic Planning.
It proposes to amend section 37E of the Tax Procedures Act to extend the tax amnesty which lapsed on June 30th 2024.
According to its memorandum of objects and reasons, the Bill which is sponsored by the Leader of the Majority Party Kimani Ichungw’ah is intended to bolster the government’s effort to enhance revenue collection.
“The Bill is intended to re-enact the provision on relief because of doubt or difficulty in recovery of taxes. The provision allows the Cabinet Secretary to allow a relief as determined by the Commissioner.
“Further, the provision requires gazettement by the Cabinet Secretary of any approved reliefs and tabling of the same to Parliament. This is to allow Parliament to check the power of the Cabinet Secretary,” reads Clause 3 of the Bill.
Another significant provision is Clause 4 of the Bill which seeks to amend section 77 on computation of time, with regards to appeals to the tax appeals tribunal, appeals to the High Court and appeals to the Court of Appeal, to exclude Saturdays, Sundays and public holidays.
Tax Amnesty has been hailed as a viable option to boost revenue. For instance, through the just-concluded tax amnesty programme, which ran from September 2023 to June 30, 2024, the Kenya Revenue Authority netted Sh43.9 billion slightly missing its Sh50 billion.
During the period, 2,617,111 taxpayers benefited from the programme during which the Authority waived penalties, interest, and fines on debts where the taxpayers had remitted the full principal tax by December 31, 2022. This Bill seeks to extend this pardon.
The programme was initially introduced through the Finance Act, 2023. The Departmental Committee on Finance and National Planning had sought to extend the programme up to March 2025, through the withdrawn Finance Bill, 2024.
During the debate on the Finance Bill, 2025, on Tuesday, June 25, 2024 the chairperson, departmental committee on finance and national planning, Kuria Kimani urged the House to approve the proposal to extend the programme to allow those with pending tax obligations reprieve from penalties and interests.
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