KRA makes a U-turn on suspension of tax reliefs

The Kenya Revenue Authority (KRA) has clarified that the suspension of tax relief payments announced on February 28, does not mean that the reliefs have been scrapped.

In a statement issued on March 1, 2023, KRA said that the suspension was meant to streamline the operational aspects on implementation of the law to ensure fairness, equity and effectiveness.

The statement said that the suspension only affects refunds, waivers, exemptions and abandonments of tax relief, which can only be done through an amendment of the law.

“KRA acknowledges all the requests from the statement on ‘suspension of tax reliefs’, it is important to note that the statement clarifies on the suspension of provision of reliefs particularly with reference to refunds, waivers exemptions and abandonments. This does not mean that the reliefs have been scrapped. The scraping of reliefs can only be done through an amendment of the law,” KRA said.

The statement added that past or current relief applications that have been submitted to KRA will still be processed.

“KRA remains committed to working closely with taxpayers, with the intention of simplifying tax processes for better tax compliance,” KRA said.

The suspension of tax relief payments had sparked outrage among taxpayers who accused KRA of reneging on its promises and increasing their tax burden.

According to KRA’s own data, over the past five years, KRA has granted tax reliefs and incentives totalling to KES 610 billion, with an average of KES 122 billion per annum.

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