Kenya Revenue Authority (KRA) has introduced an online auction system, marking a significant shift from the previous physical auction process. This technological advancement is part of KRA’s efforts to streamline tax administration and improve revenue collection while enhancing service delivery.
Following a successful pilot phase that saw KRA collect Kshs 37.5 million. An online auction allows taxpayers to appreciate the transparency of the bidding process. Also, the move aligns with the government’s commitment to efficient trade facilitation.
Speaking at the Taxpayers’ Month Launch in Mombasa, KRA Commissioner General Mr. Humphrey Wattanga emphasized the online auction’s transparency and efficiency. He highlighted its accessibility to registered taxpayers both locally and globally, noting that negotiations would be faster and more transparent.
Tax Amnesty Program
In the spirit of giving back to compliant taxpayers, KRA is urging those with accrued interests up to December 2022 to take advantage of the Tax Amnesty program. They can have penalties and interest waived by paying the principal taxes owed. The program is open for application, and KRA anticipates collecting approximately Kshs. 50 billion through this initiative before its closure on June 30, 2024.
Cabinet Secretary for National Treasury And Economic Planning, Prof Njuguna Ndung’u, CBS, emphasized the importance of the Tax Amnesty program in supporting Kenyans. Further, the program bolsters economic resilience amid global economic challenges. He also highlighted the government’s commitment to facilitating private businesses’ adaptation through reforms to stimulate economic growth.
“Tax amnesties are projected to bring in additional revenue as taxpayers voluntarily report and pay taxes that may never be collected by the Government. The amnesty programme is expected to improve tax compliance as tax administrations learn from taxpayers’ previous behaviours, thereby allowing them to plan better.” Said the CS.
KRA continues to embrace technology to enhance tax compliance. The Electronic Tax Invoice Management System (eTIMS), launched in February 2023, has already been adopted by 95,732 VAT-registered taxpayers. eTIMS has proven effective in reducing VAT fraud and increasing tax revenue.
Additionally, KRA has integrated its systems with betting and gaming companies to streamline tax remittances from this sector. This has further contributed to revenue growth. These collaborative efforts incorporate taxpayers’ feedback and enhance tax administrative processes.
The annual Taxpayers’ Month celebration aims to recognize and appreciate compliant taxpayers. This is because taxpayer play a vital role in ensuring the country’s economic stability. This year’s theme, “Tunawiri,” calls on all Kenyans to contribute to Kenya’s prosperity through tax payments.