Economy
4.4 million Kenyans file tax returns before the deadline
Friday, June 23, 2023
Kenya Revenue Authority (KRA) staff help Kenyans file tax returns at Kamukunji Grounds in Bondini District, Nakuru on June 1, 2023. Image | Boniface Mwangi | NMG
Data from the Kenya Revenue Authority (KRA) showed that around 73 per cent of Kenyans targeted by the tax man had filed tax returns before the June 30 deadline.
KRA data released Thursday shows more than 4.4 million taxpayers have filed returns by June 20 against a target of six million taxpayers.
The tax officer says he has been processing more than 120,000 files per day and estimates the daily deposit will rise to 500,000 as the deadline approaches.
“4.41 million taxpayers have filed their returns representing a growth of 15 percent compared to the same period in 2022. This includes both individual and non-individual taxpayers as well as resident and non-resident taxpayers,” the tax officer said Thursday.
Under the Tax Procedures Act 2015, the KRA has powers to require employers to deduct fines and tax dues from workers’ salaries.
Individual taxpayers such as employees are currently liable to a fine of 2,000 shillings or five percent of the annual tax payable for the previous year, whichever is higher.
On the other hand, corporations face a penalty of 20,000 shillings or five per cent of the tax payable in the year in which the return is intended to be obtained, or whichever is higher.
The taxman has failed to meet revenue targets in recent years on tax defaulters and a small tax bracket that does not include the majority of the self-employed and those in the informal sector.
is reading: The penalty for tax scammers for the wealthy increased by 167 percent
The KRA missed revenue collection targets by Sh27 billion in the three months to December amid President William Ruto’s aggressive campaign to weed out tax evaders and boost revenue.
Tax collections from five main sources – payroll, corporations, value-added tax, customs and import duties – in the three months to December were Sh466.46 billion against a target of Sh493.11 billion.
Other revenue, including investment, fines, levies and forfeitures, missed target by Sh6.16 billion with Sh33.10 billion collected in the first quarter.
The Treasury plans to increase tax collection by Sh274.1 billion, or 14.29 per cent, to Sh2.19 trillion in the current fiscal year ending in June and cut borrowing.
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