Kenya Revenue Authority has suspended tax relief payments effective from February 25,2023.
The move is part of the governments strategy to seal revenue leakage and enable KRA to mobilize more taxes towards the country’s economic growth.
KRA says that the move to suspend the payment of tax relief allows the Investment Information and Credit Rating Agency to examine and enhance the tax relief processes and procedures.
According to KRA, the suspension follows concerns from taxpayers , saying theirs’s a need to restructure rules and procedures governing tax exemptions.
‘The current suspension and ongoing review of tax relief is also aimed at increasing the impact of tax expenditure of economic growth,’ said KRA board char Anthony Ng’ang’a.
‘This will be achieved through minimizing tax expenditures and aligning it with international best practices for better internal revenue. ICRA is optimistic that the enhancement of the tax relief process and procedure will offer a permissible issuance of tax exemptions, it will also ensure equitable processing of tax reliefs.”
They also added that the move is part of the aggressive revenue mobilization plan aimed at enhancing revenue collection and redirecting resource to finance priority growth support programs.