Browsing: Kenya Revenue Authority (KRA)

The East African region has a long history of cooperation stretching back to 1900 when a Single Customs Collection point was established at Mombasa. Still, Non-Tariff Barriers remain a challenge to trade. The first instance of regional integration dates back to 1917 between Uganda and Kenya.…

Kenyan manufacturers have raised concerns over several proposals in the Finance Bill 2023. The country looks forward to the next financial year’s budget that the treasury cabinet secretary will table in June. The country’s National Treasury has proposed several new tax measures. Under these measures, the public and private sectors will cough more taxes to fund the 2023/24 budget.…

• In Kenya, fuel is set to cost more once the taxman effects 16 percent VAT from the current 8 percent, which will make already high pump prices simply prohibitive. 
• Starting January 2024, Finance Bill also seeks to increase the advance tax payable on passenger and commercial trucks to $36.52 from $21.91 per year.
• The new tax will simply increase the cost of transportation in Kenya, piling pressure on consumers already overburdened by high food prices amid sluggish economy.

Kenya’s transportation sector is at risk as the government considers fresh fuel VAT increase, which threatens to cripple businesses. Through the Finance Bill, the government is also proposing to increase the advance tax payable on passenger and commercial trucks to $36.52 from $21.91 per year. As a result, investors in the industry might be forced to scale down their operations even as others heap the costs on consumers. 

The looming hit by …

• KRA started the new financial year on an upward trajectory, after surpassing its July 2021 target
• Pay As You Earn (PAYE) registered a performance rate of 104.2%
• Expects the Gross Domestic Product to grow by 6.3% in FY 2021/22 

The Kenya Revenue Authority (KRA) said it had collected KSh 476.646 billion, surpassing the Financial Year 2021-2022, Quarter One (July – September 2021) revenue target of KSh 461.653 billion by KSh 14.992 billion.

In a statement, the Authority said the performance reflected a sustained revenue growth in the first three months of the year, with a performance rate of 103.2% and growth of 30%.

Despite the slow economic growth, KRA said it commenced the new financial year on an upward trajectory, after surpassing its July 2021 revenue target with a surplus of KSh 311 million, after a revenue collection of KSh 152.854 billion against a set target of KSh 152.543 billion, …

The Kenya Revenue Authority (KRA) is planning to move to the Court of Appeal to overturn the High Court’s ruling that barred the taxman from collecting minimum tax from businesses.

Justice George Odunga on Monday, September 20, 2021, at the Machakos High Court, made the ruling after finding section 12D of the Income Tax Act unconstitutional.

Double taxation

The court noted that minimum tax was unconstitutional for subjecting taxpayers to double taxation and was punitive in nature.

However, the authority with the findings of the court and will prefer an appeal to the Court of Appeal to challenge this finding.

Reduce tax burden

In a press statement posted on their official website hours after the court ruling, KRA said the appeal will ensure that it continues to review and improve on tax policies for them to reduce the tax burden.

“The Kenya Revenue Authority respectfully disagrees with the findings of …

Kenya Revenue Authority has reached a new record of revenue collection to hit Sh1.669 Trillion in the 2020/21 financial year, compared to Sh1.607 Trillion collected in FY 2019/20. 

In a statement, the Authority’s Director-General Githii Mburu says that this is in spite of the challenging operating economic environment brought about by the COVID-19 Pandemic. 

“Kenya Revenue Authority (KRA) has defied all odds to surpass its revenue target after eight (8) years, since FY 2013/14,” the Authority said. 

The FY 2020/2021 revenue target as reflected in the 2021 Budget Policy Statement was Sh1.652 Trillion which KRA says it surpassed with a surplus of Sh16.808 Billion. 

This represents a performance rate of 101 percent and revenue growth of 3.9 percent compared to the last Financial Year. 

KRA says the performance is consistent with the prevailing economic indicators, especially the projected GDP growth of 0.6 percent in 2020.

During the period under review, …

Kenyan businesses can now heave a sigh of relief after court has finally granted an injunction on minimum tax case.

In January this year, eight business associations representing the business community in Kenya have come together to call for the abolishment of the 1 per cent minimum tax introduced by the government. 

The new bill which was to take effect on 1^st  January this year was introduced through the Finance Bill, 2020 (the Bill). 

The bill was tabled in the National Assembly for debate and approval on 6 May 2020. This was a departure from previous years where finance bills would be introduced to the National Assembly after the reading of the national budget in June. This change was necessitated by recent constitutional interpretations issued by the court which barred the government from collecting taxes before the relevant tax provisions are approved by the …