Kenya Revenue Authority has asked Kenyans who have not benefited from the tax amnesty program to seize the opportunity, since from July 1, 2024 the program will cease to operate and penalties and interests will continue to accrue.
Citizens have been urged to start the journey of a tax debt free life by filing annual tax returns and clearing any tax debt owing the government by signing up now for the tax amnesty program.
The government through Kenya Revenue Authority targets to collect Sh 50 billion as additional revenue as it pardons the taxpayers through the tax amnesty program.
Tax payers who have been owing the government through an outstanding principal amount that has accrued a penalty and thereby accruing interests, on or before December 31, 2022 can apply for tax amnesty of the principal amount.
Speaking during the official flagging off the tax amnesty roadshow at Custom house in Mombasa Commissioner for Domestic Taxes Rispah Simiyu said the Finance Act 2023, introduced the tax amnesty program, a pardon for penalties and interest accrued by taxpayers up to 31st December, 2022.
Simiyu said that KRA is mandated by law to pardon the penalties and interests accrued upon payment of the principal amount.
She added that the authority has put in place measures to support all taxpayers to resolve any pending tax matters to ensure tax payers benefit from the tax amnesty.
The commissioner said the authority has also instituted measures to facilitate tax payers with outstanding principal amounts and have a payment plan, which they should take up by 30th June, 2024 to enjoy the amnesty.
Simiyu noted that all nil filers, that is, tax payers without outstanding principal taxes, who were not previously filing their returns up to December 31, 2022, will receive automatic amnesty of their accrued penalties and interest.
“As of December 2022, the total tax debt portfolio (on iTax) amounted to Sh1,417, 317,171,099 (one trillion, four hundred and seventeen billion, three hundred and seventy million, one hundred and seventy-one thousand, and ninety-nine),” she said.
This, she said, comprises principal tax amounting to Sh 892, 203,694,787 (eight hundred and ninety-two trillion, two hundred and three million, six hundred and ninety-four thousand, seven hundred and eighty-seven) and penalties and interest of Sh 525,113,476,311 (five hundred and twenty-five trillion, one hundred and thirteen million, four hundred and seventy-six thousand, three hundred and eleven).
She noted that as at May 31 2024, over 1 million taxpayers have benefited from the tax amnesty program where KRA has collected Sh 26.9 billion.
She added that the taxpayer has declared Sh 38.5 billion in principal tax in the amnesty applications received so far.
She said form the declared principal tax, Sh 11.7 billion is pending payment from the applicants by June 30, 2024.
“We anticipate collecting over Sh 50 billion from the debts accrued in the period. In the same period, 997,958 tax payers have so far benefited from the amnesty for penalties and interest amounting to Sh 260.7 billion,” she added.
The commissioner said they are doing the final push to taxpayers to take up the great product of amnesty from the government.
She said the road show will seek to transverse the country encouraging taxpayers to sign up for the program from all corners of Kenya.
“We do not want to leave anybody behind. We want all taxpayers owing government tax debt to take up the tax amnesty program. Our officers will accompany the caravan, I encourage you to talk to them and ensure that your tax debt is forgiven,” she said.
– By KNA / Chari Suche
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