Tax Cut Petition
KRA reaps $6.12M in tax arrears despite the economic turbulence
The Central Rift Valley Water Development Agency (CRVWDA) has been directed to pay the taxman, Kenya Revenue Authority (KRA) by the Tax Appeal Tribunal $6.12M as outstanding withholding tax it failed to collect from 2 firms contract to construct Sabor Iten Tambach and Itare water supply.
This comes a day before the national budget for the FY 2021/2022 is presented to Parliament by the National Treasury & Planning Cabinet Secretary Hon. Amb. Ukur Yattani.
Businesses have called on the government to revise the current tax regime and adopt an emergency stimulus package and tax cuts to prevent the economy from further deteriorating as a result of stringent covid-19 regulations following a surge in corona virus infections.
The Kenya National Chamber of Commerce and Industry (KNCCI), has been on the fore front imploring the government to consider the adversely affected SMEs like entertainment, hospitality and transport sectors through necessary relief mechanisms.
The BMO is advocating for lowering the value-added tax (VAT) rate from 16% to 14%, reduction of fuel taxes and elimination of the minimum tax, which demands loss-making firms to pay a duty equivalent to one per cent of their sales.
The KNCCI has called upon the Central Bank of Kenya to allow lenders once again to restructure loans for borrowers in the wake of the latest covid-19 stringent regulations.
Paying taxes by SMEs and other enterprises remains critical for government planning and execution of public related activities, however the taxes must be within the reach of such enterprises.
Time for the government to work for its people is now.