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MPs reject extension of KRA tax amnesty program aimed at forgiving taxpayers

Pabio December 4, 2024

The National Treasury has sought to extend the Kenya Revenue Authority (KRA) tax amnesty program, which ended in June 2024.
Through the Tax Procedures (Amendment) Bill 2024, Treasury Cabinet Secretary (CS) John Mbadi has sought to extend the program until June 2025 and allow taxpayers to pay arrears taxes without accrued penalties.
However, MPs rejected the decision to forgive taxpayers, citing the loss of revenue suffered by the KRA.

TUKO.co.ke journalist Wycliffe Musalia has over five years of experience in financial matters, businesstechnology and climate, which provides in-depth insight into Kenyan and global economic trends.

Kenyans will have to pay interest and penalties on tax arrears after MPs rejected attention to amnesty scheme.

John Mbadi proposed expanding the tax amnesty program to increase revenue collection. — Treasury CS John Mbadi speaking at a past event in his office. Photo: National Treasure of Kenya.
Source: Twitter

THE National Treasure sought to extend Kenya Revenue Authority (KRA) tax amnesty program, which ended in June 2024

Treasury Cabinet Secretary (CS) Jean Mbadi changes proposed in the Tax Procedures (Amendment) Bill, 2024, to extend the scheme until June 2025.

Why MPs refused tax amnesty for KRA Kenyans

This could allow taxpayers to pay their back taxes without penalties.

“The bill seeks to reinstate the provision for relief in cases of doubt or difficulty in the collection of taxes. The provision allows the Cabinet Secretary to authorize relief as determined by the Commissioner,” reads the bill. the bill. tabled in Parliament in September 2024.

According to the Business Daily, lawmakers cited revenue losses, which could affect the Treasury’s ability to fulfill its mandates.

The National Assembly Finance Committee, chaired by MP Molo Kimani Kuria, changed the amnesty period between December 31, 2023 and June 30, 2024, as opposed to the previous proposal of December 2022.

How much KRA was collected through tax amnesty

Under the amnesty program of the 2023 Finance Bill, over 1.06 million companies with tax arrears amounting to KSh54.5 billion have applied for tax amnesty in September 2023 , which ended in June 2024.