Kenya Revenue Authority (KRA) has assured taxpayers and the general public that it will continue supporting them as the country faces a global health challenge. Individuals and businesses will access KRA services which the authority will facilitate timely payment of taxes
In line with the Presidential directive to mitigate the effects of COVID – 19 to the Kenyan economy through; KRA has implemented the reduction of Personal Income Tax top rate (PAYE) from 30 per cent to 25 per cent. 100 per cent Tax Relief for persons earning up to Ksh. 24,000.
Also, KRA has facilitated the reduction of Resident Corporate Income Tax rate from 30to 25 per cent and reduction of Turnover Tax rate for SMEs from 3 to 1 per cent. Including Immediate reduction of VAT rate from 16 to 14 per cent, lowering of Central Bank Rate (CBR) to 7.2 per cent and lowering of Cash Reserve Ration (CRR) to 4.2 per cent.
Following the Central Bank of Kenya’s announcement to offer flexibility to banks on loans that were active as of March 2020 to maintain liquidity levels. KRA will facilitate expedited payment of VAT Refunds by allocating an additional Ksh. 10B. And finally setting up a fund to which players in the Public and Private Sector are contributing in support of Government efforts.
Whereas all efforts will be made to facilitate payment of taxes. KRA will decisively handle any matter that pertains to deliberate non-payment of taxes. In the event that a taxpayer is not able to honor the agreed payment plan. Taxpayers will provide proof of transactions in response to VAT inconsistency reports. And appreciates that is not tenable in the current environment.
To mitigate this, KRA has deferred the physical submission of documents and appearance. Taxpayers will be duly notified of when they can appear in person. In the interim, taxpayers are advised to submit evidence of transactions through [email protected]
KRA is also calling upon citizens to play their constitutional role and pay all taxes due. And support the Government in the provision of critical services.
Related posts
