The Kenya Revenue Authority (KRA), under the leadership of Commissioner General Humphrey Wattanga, has unveiled a significant tax interest waiver initiative. This initiative targets tax interest accrued prior to December 2022, provided that taxpayers settle their principal tax obligations in full.
This measure falls in line with the Tax Amnesty Program outlined in the Finance Act of 2023, a strategic move aimed at bolstering voluntary tax compliance nationwide.
Commissioner General Wattanga has expressed the KRA’s unwavering commitment to enhancing voluntary compliance among taxpayers. The cornerstone of this effort, as he highlighted, is the Tax Amnesty Program introduced through the Finance Act of 2023.
The KRA is urging individuals who have incurred interest charges up to December 2022 to clear their outstanding principal tax liabilities, thus making them eligible for the write-off of penalties and interests.
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As per the provisions of the Finance Act, the Tax Amnesty Program is set to run from September 1, 2023, to June 30, 2024. Eligible participants include individuals who have accumulated penalties and interest without settling principal taxes before December 31, 2022, as well as those with principal tax liabilities that have incurred interest charges.
It is essential to note that applicants are required to submit a proposed payment plan for any outstanding principal taxes as part of the application process.
This development aligns with President William Ruto’s objective to waive penalties associated with pending taxes accrued before January 1, 2023. President Ruto’s decision stems from the concerns raised by Kenyan citizens regarding the accumulation of interest charges.
He emphasized that this waiver will alleviate the tax burden on the Kenyan population, thus contributing to the government’s broader vision of fostering a fair and inclusive economy.
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This offer is designed to encourage taxpayer compliance and presents a favorable opportunity for individuals to fulfill their tax obligations.
