KRA introduces mobile app to boost tax collection

The Kenya Revenue Authority has introduced a mobile application in hopes to encourage tax compliance especially among those in the informal sector. 

Deputy Commissioner in charge of Policy and Tax Advisory Caxton Masudi says the taxman hopes that the new app will help net at least one billion shillings.

In March this year, President Uhuru Kenyatta announced a raft of tax relief measures which included lower income tax for salaried employees in the formal sector and a reduction in corporate tax for large organisations. 

Small-scale businesses and companies with annual sales of below 500,000 shillings would also be exempted from paying the one percent sales tax as part of a series of measures to cushion them from the impact of the Coronavirus pandemic. However, even with these measures, the taxman has announced its optimism in meeting its tax targets.

KRA says that to bolster its efforts in widening the tax bracket even further, it is leveraging on technology by targeting the informal sector in introducing a mobile based platform dubbed KRA M-Service app with more added functionality than its web based version at the same time, KRA looked to calm various sectors that were affected by the October 1st  excise duty rate of five percent, signaling higher costs for excisable goods which largely feature fuel and alcohol.

The rate of excise duty is expected to net the taxman an extra 10 billion shillings despite impact of Covid-19 on businesses and is adjusted once every year in line with inflation as a means to safeguard government revenues earned from the taxation.

  

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