The Kenya Revenue Authority (KRA) has issued a stern warning to non-compliant taxpayers, emphasizing the importance of adhering to tax regulations and taking advantage of the ongoing tax amnesty programme. With millions in defaulted taxes looming over the heads of many Kenyans, the two-month ultimatum serves as a crucial reminder of the impending deadline.
As of now, a substantial sum of Ksh28.7 billion remains outstanding in unpaid principal taxes, highlighting the significance of addressing these financial obligations promptly. The KRA has already waived a considerable amount totaling Ksh244.7 billion for compliant taxpayers who have utilized the programme to settle their dues. It’s commendable that over 500,000 Kenyans have already benefited from this initiative, showcasing the positive impact it has had on enhancing compliance and revenue mobilization.
However, it’s essential to heed the KRA’s warning that there will be no extension or further opportunities for amnesty beyond the June 30 deadline. This means that individuals or entities with outstanding tax liabilities must act swiftly to clear their dues before facing penalties and interests that will not be subject to any future waivers.
It’s worth noting that while the tax amnesty programme provides relief by waiving penalties and interest accrued up to December 31, 2022, it does not cover customs and import duties, nor does it include penalties and interests incurred after December 30, 2022. This clarification underscores the importance of understanding the scope and limitations of the programme to ensure compliance with tax regulations.
The introduction of stricter penalties for eligible individuals who fail to utilize the amnesty opportunity underscores the seriousness with which tax compliance is viewed. Therefore, it’s in the best interest of taxpayers to take proactive measures to resolve any outstanding tax issues and avoid facing harsh penalties down the line.
Overall, the KRA’s efforts to encourage compliance and revenue mobilization through the tax amnesty programme are commendable. However, it ultimately falls upon individual taxpayers and businesses to uphold their responsibilities and contribute to the country’s fiscal stability by fulfilling their tax obligations in a timely manner. With the deadline approaching, now is the time for non-compliant taxpayers to take decisive action and seize the opportunity provided by the amnesty programme before it’s too late.