KRA registers 2.2 million taxpayers on iTax

The Kenya Revenue Authority has reiterated its zeal to continuously leverage on information technology to drive enhanced and efficient revenue collections.

Addressing the media on Revenue Performance on Tuesday, the Commissioner General John Njiraini said there has been a significant turnaround in the months of February and March 2016 driven by improvements in Domestic Taxes.

“We shall leverage on technology platforms and strategic stakeholder partnerships to widen expand the taxpayer base,” said Njiraini. “There will also be a rollout of an Intelligence Gathering System in July 2016 to enhance integrity externally and internally.”

“There has been strong performance in Excise and VAT collection due to reforms made within the law to remove loopholes. As at March 2016, the number of active taxpayers is 2.2 Million; with iTax updates at Ksh 3.9 Million,” he added.

To meet KRA’s revenue target for the financial year 2016-17 set at Sh1.3 trillion, Njiraini said, “There will be no more manual PAYE returns and all persons will be required to file their returns on iTax. “

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The commissioner noted that in June they will be rolling out a Mobile public authentication Application to combat illicit production of beverages.

Together with the PVoC (Pre-Export Verification of Conformity) for Exports to Kenya, consumers will be assured of the safety and quality of the imported goods they buy, and to protect the Kenyan manufacturers from unfair competition. The program is currently being implemented by the Kenya Bureau of Standards.

“The PVoC program will also enable us confirm the descriptions and quantities of imported goods to deter illegitimate business,” according to Njiriani.

Further, the taxman said in expanding its base, they will be linking their sytems with the bank systems.

KRA has leveraged information technology such as the 2005 Simba Customs System which was upgraded at a cost of KSh 1.Billion and the ubiquitous iTax platform, to drive enhanced and efficient revenue collections. iTax has, for example, made it difficult for taxpayers who previously evaded tax to transact with tax compliant taxpayers.

One of the other initiatives that were adopted to enhance VAT collections was withholding VAT (WHVAT).

In 2004, the Government first introduced WHVAT to ensure that suppliers accounted for VAT, particularly on supplies made to Government departments and agencies. As a result of the WHVAT, taxpayers accumulated huge VAT refund claims, which saw the VAT refund claims bloat to approximately Sh30 billion.