KRA banks on budget changes to hit collection target

The Kenya Revenue Authority (KRA) has instituted tough measures to achieve collection targets that will include stiffer punishment on dealers in illicit goods.

The authority will have far-reaching powers to revoke licences and seize property on locations where the counterfeit goods are made.

KRA Deputy Commissioner of Corporate Policy Maurice Oray said under the excise duty law, the commissioner would be empowered to suspend a licence on an offence relating to fraud and non-compliance.

Also included is the forfeiture of any plant, materials or finished goods to the commissioner.

“Over the past one year we have been enhancing legislation and addressing weaknesses in enforcement. We are imposing stiffer penalties but we realised we needed to seize goods and equipment as well,” said Mr Oray at a KRA post-budget meeting yesterday.

The taxman has included stiffer penalties of a minimum Sh5 million as a deterrent.

Exporters seeking tax exemptions will also have to prove they have exported the goods for verification and validation before getting the subsidies.

Oray said KRA is confident that it will meet tax targets this year despite doubts on revenues in a year dogged by politics, drought and under-performing businesses.

Treasury had set a tax target of Sh1.49 trillion, but was forced to revise it downwards to Sh1.43 trillion as a shortfall became apparent.