May 20, 2024

KRA responds to reports of taxing till numbers

2 min read
KRA responds to reports of taxing till numbers

Kenya Revenue Authority (KRA) dismisses social media reports that it seeks to start taxing on till numbers

Kenya Revenue Authority (KRA) dismisses social media reports that it seeks to start taxing on till numbers.

In a statement via its X handle on Tuesday, November 28, KRA clarified that till numbers are not subject to taxation.

The taxman cautioned Kenyans to be aware of fraudsters who were purporting to collect tax urging the public to verify the authority’s staff via its website.

“Not true. Till numbers are not subject to taxation, and KRA does not collect any such taxes. Beware of fraudsters purporting to do any of the above,” KRA stated.

The authority was responding to a WhatsApp screenshot posted by an X user claiming that KRA officers are walking around and taxing businesses using M-Pesa till numbers.

The post also alleged that business owners are not accessing money paid via till numbers as a result. 

“Morning, if you have a shop or using Lipa na Mpesa for your business, most are being shut down (unafaa lipa tax for it), customer can pay but as a merchant, you can’t access your money, since yesterday, thought it was maintenance but apparently most supermarkets and shops are opting out of lipa na Mpesa and out of Pochi la Biashara, so kindly look for alternative means of payments by clients,” the flagged post read in part.

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The user further claimed that businesses across the board were planning to ditch mobile money channels due to the new measures.

In October, KRA’s chief manager in the Domestic Taxes Department Caroline Rotich revealed that the agency had flagged a recent trend where businesses were avoiding digital payment channels to avoid paying taxes.

The official stated that the agency had noted that most businesses had begun asking customers to pay in cash.

“We are working on strategies on how we can work around this,” the official remarked at the time.

Meanwhile, KRA is working on several strategies to ramp up revenue collection in line with its long-term goals.

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