KRA’s new withholding tax to worsen refund backlog, warn experts

Kenya Revenue Authority Commissioner General John Njiraini.

NAIROBI, KENYA: The Government has re-introduced withholding Value Added Tax (VAT) on its suppliers in a move aimed at shoring up its revenue collections.

But tax experts are warning that the policy reversal would lead to accumulation of tax refunds that already have plunged many businesses into cash-flow problems.