The Kenya Revenue Authority (KRA) netted Ksh.1.995 billion from voluntary tax disclosures within nine months to September 30 this year.
This follows a voluntary tax disclosure program (VTDP), a 36 months window for taxpayers to disclose hidden tax arrears which opened in January this year by KRA.
Further data from the KRA shows the potential of greater collections from the program with 325 applications at the end of August that had the capability of pooling Ksh.3.4 billion for the taxman if approved.
According to KRA Commissioner General Githii Mburu, collections from the voluntary disclosure are in line to potentially hit the Ksh.5 billion annual mark.
“So far, we’ve seen some good progress on that area. We had an early estimation of about Ksh.5 billion for the whole year and I think we are progressing very well,” he said.
“Ours is to encourage tax payers to come forward and take advantage of this particular program and many Kenyans are coming forward.”
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The VTDP was effected through the 2020 Finance Act as a measure to enhance compliance among taxpayers.
Kenyans making full disclosures this year to December 31 will receive a 100 percent waiver on all accrued interest and penalties.
The waiver will however half to 50 percent between January 1, 2022 and December 31, 2022 and later to 25 percent during the program’s last year of operations in 2023.
KRA has been putting out notices to taxpayers imploring them to take part in the initiative.
Only, taxpayers already implicated in suits on non-tax compliance are barred from the program.