KRA clears air on tax relief suspension after Kenyans' uproar

KRA clarifies its position on the suspension of tax reliefs. [Elvis Ogina, Standard]

The Kenya Revenue Authority (KRA) has clarified that it has only suspended tax reliefs in the form of refunds, waiver exemptions, and tax abandonments.

This means that tax relief payments on salaries and other charges have not been scrapped.

"KRA acknowledges all the requests from the statement on the 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," the taxman said in a statement on March 1, 2023.

"This does not mean that the reliefs have been scrapped. The scraping of reliefs can only be done through an amendment of the law," added KRA.

According to the agency, the suspension is meant to ensure fairness, equity, and effectiveness in the implementation of the legal provisions.

"Taxpayers should note 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."

The move follows uproar from Kenyans after KRA announced on Tuesday, February 28 that it had suspended all tax reliefs.

The move would see several firms that previously enjoyed tax breaks start paying taxes, and those awaiting refunds facing an uncertain future.

According to the taxman, the suspension, backed by the National Treasury, allows KRA to "audit and enhance the tax relief processes and procedures".