The Kieleleshwa MCA has called out the KRA Chairman Anthony Ng’ang’a Mwaura after he allegedly enacted the law.
According to the constitution, enactment of law is bestowed in parliament.
However, KRA Chairman, according to Kieleleshwa MCA Hon Robert Alai amended the law.
Alai, via Twitter shared a letter allegedly from the KRA Chairman which details about the amended law.
He captioned the letter “KRA Chairman just amended the law?”
In a letter dated 28th February, KRA chairman wrote:
“KRA suspends payment of tax relief to enhance the process.
In a bid to enhance the current processes related to the payment of tax refunds, exemptions, waivers and abandonments, the Kenya Revenue Authority (KRA) in concurrence with the National Treasury & Economic Planning has suspended all tax relief payments with effect from 28h February 2023 until further notice.
In the past five years, KRA has granted tax reliefs and incentives totalling KShs
610 Billion, with an average of KShs.122 Billion per annum. The move to
suspend payment of tax reliefs allows KRA to audit and enhance the tax relief
processes and procedures. KRA continues to comply with the law by assessing and processing the tax reliefs during this process. However, payments will not be disbursed until the end of the process.
The suspension of tax reliefs follows concerns from taxpayers, initiating the
need to restructure rules and procedures governing tax exemptions. The
current suspension and ongoing review of tax reliefs is also aimed at inereasing
the impact of tax expenditure on economie growth. This will be achieved
through minimising tax expenditure and aligning it with international best
practices for better internal revenue
KRA is optimistie that the enhancement of the tax relief process and procedures
will offer a permissible issuance of tax exemptions; it will also ensure equitable processing of tax reliefs.
The improvement is part of the Government’s strategy to seal revenue leakage and enable KRA to mobilise more taxes towards the country’s economic growth.
It is also part of the aggressive revenue mobilisation plan aimed at enhancing
revenue collection and redirecting resourees to finance priority growth-
supporting programmes. This move is aimed at powering the Bottom up
Transformation Agenda (BETA).
In addition to enhancing trust and facilitation, KRA remains committed to
provision of excellent customer service to taxpayers. The Authority will
continue working closely with taxpayers to resolve arising issues for ease of tax
compliance.”
According to Eric Theuri, the President of the Law society of Kenya, KRA Chairman has no legal power to suspend the law in so far as it relates to tax refunds, exemptions, waivers & abandonment.
“Unless immediately revoked, LSK shall challenge this egregious violation of the Law.” Said Eric Theuri.
