KRA allocated Sh1.2bn to hire spies in fresh efforts to collect more tax
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KRA allocated Sh1.2bn to hire spies in the hunt to collect more tax by William Ruto's administration
KRA allocated Sh1.2bn to hire spies in the hunt to collect more tax by William Ruto’s administration.
In new efforts to increase revenue and reduce reliance on borrowing, the Kenya Revenue Authority (KRA) has been given an additional Sh1.2 billion to hire more intelligence and enforcement agents who will detect and apprehend tax fraudsters.
In reviewing the budget for the fiscal year that begins in July, the Parliament’s Budget and Appropriations Committee requested from the Treasury additional billions to help the taxman hire more staff.
As the Treasury aims to gather at least Sh400 billion in additional taxes for the fiscal year beginning next month, the personnel will strengthen revenue collection from new scheduled levies and go after tax evaders.
The committee increased the budget on the expenditure plan the Treasury submitted to Parliament by Sh81 billion, bringing it to Sh3.67 trillion, which increased pressure on the KRA.
The administration of President William Ruto has proposed a number of tax increases on goods like fuel, housing, mobile money transfers, and digital content to boost revenue, infuriating the public and the opposition who argue that the cost of living is already too high.
“Increase Sh1.2 billion (Recurrent) for KRA to employ tax assistants,” says the Budget and Appropriations Committee in proposals that await MPs’ approval.
The KRA, in early May, also advertised for revenue service assistant jobs, listing their role as overseeing the issuance of e-TIMS receipts by traders, ensuring VAT-registered traders are compliant, and keeping an eye on compliance with excise regulations.
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The KRA collections, which form the bulk of cash streams for the government, are forecast to grow to Sh2.43 trillion from the current target of Sh2.04 trillion for the year ending June.
The Treasury will be leveraging on increased use of data and linkages between KRA systems with third parties such as banks and mobile money platforms like M-Pesa to spy on taxpayers’ activities, use of Internet-enabled cameras at excisable goods processing plants, and full rollout of digital electronic tax registers (ETRs) to grow revenue.
In terms of tax collected as a proportion of annual economic output, Kenya has been underperforming other nations like South Africa, State House said.
The KRA’s enforcement unit has been using various databases to pursue suspected tax cheats, including bank statements, import records, motor vehicle registration details, Kenya Power records, water bills, and data from the Kenya Civil Aviation Authority (KCCA), which reveal individuals who own assets such as aircraft.
This comes amid proposals in the Finance Bill 2023, which paint a picture of a government that is keen on giving the KRA teeth to bite while making it expensive to appeal tax demands in the event of a dispute.
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