Relief for Kenyans as Ruto waives all penalties on accrued pending taxes
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William Ruto government waives penalties on pending taxes that accrued until January 1, 2023
William Ruto government waives penalties on pending taxes that accrued until January 1, 2023.
Making the declaration Monday, President William Ruto said the move will help alleviate financial burdens as well as align it with the government’s commitment to a fair and inclusive economy.
The president noted it was important to address the issue as there were concerns raised by Kenyans who were trapped with accrued interests.
“From September 1, 2023, to June 2024, you will have the opportunity to settle only the principal tax amount of outstanding tax debts incurred before January 1 2023 as we are waiving penalties and interests over the nine-month period,” Ruto announced.
Ruto further added that the waiver will ease the burden on Kenyans and align with the government’s plan for a fair and inclusive economy.
“We are now making an offer to our taxpayers to have an opportunity to only pay the principal. I expect the taxpaying public will take advantage,” he remarked.
The Head of State also remarked that the Finance Act 2023 introduced the Tax Payer amnesty program for penalties and interests accrued as of December 31, 2022.
According to Ruto, the amnesty program will assist taxpayers with financial burdens and spur economic growth and inclusivity.
Ruto also emphasised the government will collect enough taxes to be self-sufficient with the help of relevant bodies.
The President has championed efficient and reliable ways to collect revenue from government institutions and remove the middlemen.
He spoke during the official launch of the Central Bank of Kenya’s (CBK) Dhow Central Securities Depository (CSD) where he commended CBK for streamlining its systems.
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The digital facility, Ruto said, will eliminate barriers for Kenyans to trade in the financial market.
“The transformation lies in the fact that the new system delivers convenience, efficiency and speed, without compromising security, and enhances security and transparency,” he said.
Ruto pointed out that with the new innovation, investors will longer need to physically visit CBK’s head or branch offices to undergo the manual process of opening a CSD account.
Opening the account previously took 14 days and involved laborious manual trading.
Under the new digital system, investors seeking to invest in Treasury bills and bonds will no longer have to visit CBK physically.
CBK will no longer accept cash or cheque deposits for payments of Treasury bills and bonds- all payments will be done via a commercial bank.
The existing investors are set to be transferred to the new platform.
The platform has been implementes through the support of World Bank.
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