Molo MP Kuria Kimani, who doubles as the National Assembly Finance Committee Chairman, has laid out two categories of Kenyans who do not qualify for the recently unveiled tax amnesty programme.
Appearing on Spice FM on Thursday, the lawmaker explained that the Amnesty Programme covers all tax categories save for individuals with unresolved tax disputes or those categorised under custom taxes in line with the East African Community Customs Management Act.
Unresolved Disputes
Kimani added that all taxpayers with outstanding arrears are required to settle all principal taxes owed to the taxman before penalties or interest accumulated can be waived.
In the case of unresolved disputes, however, it is difficult for the parties involved to determine the principal tax owed.
"It is in all categories of taxes except those that are in dispute. You probably did an assessment of your tax but Kenya Revenue Authority (KRA) also came and did an assessment of your taxes and you are not able to agree with the officers. That means there is a dispute," he explained.
"Unless you resolve that dispute and agree on the amount you owe, then you do not qualify."
Kimani, however, revealed that once the parties reach an agreement on the principal amount to be paid, the taxpayers will then become eligible for the Amnesty Programme.
EAC Customs
The Finance Committee chairman further noted that individuals mandated to pay customs taxes in line with EAC requirements are not eligible for the programme.
"We have the East African Community Customs Management and those are custom taxes agreed upon by the East African Community," he explained.
"If the taxes that you owe are going to EAC, then that goes beyond the border and you do not qualify for amnesty."
Amnesty Programme
At the beginning of October, the Kenya Revenue Authority (KRA) revealed that it would waive tax interest accrued before December 2022 if taxpayers settle their principal tax in full.
Commissioner General Humphrey Wattanga, in a statement, noted that the move is expected to boost voluntary compliance among taxpayers across the country.
"KRA is constantly determined to enhance voluntary compliance among taxpayers and has made significant strides in this field. One of the key pillars to enhance voluntary compliance is the Tax Amnesty Program introduced through The Finance Act 2023," he stated.
"In the spirit of giving back to taxpayers, we are calling on all who have accrued interests up to December 2022, to pay up the principal taxes due, so that we can write off the penalties and interests accrued."
The programme will run from September 1, 2023, to June 30, 2024, and can be applied for in KRA’s iTax system.
The development is in line with President William Ruto's goal of waiving the accrued penalties on pending taxes incurred before January 1, 2023.
