Tax Defaulters to be listed on CRB as KRA Struggles to hit Revenue Targets

By Soko Directory Team / March 14, 2019




Credit Reference Bureau (CRB), a name that many Kenyans are always scared of but one that hundreds of thousands cannot avoid to be part of.

Stats show that more than 500,000 Kenyans are listed on the CRB for defaulting in the payment of loans taken from various financial institutions including digital lenders.

More than 80 percent of those listed on CRB are young people who have rushed to take up instant loans via mobile loan apps where they have ended up defaulting.

Those listed on CRB are treated as ‘risk borrowers’ and cannot take a loan from any other financial institutions including from some of the digital lenders.

As hundreds of thousands of Kenyans struggle to unchain themselves from the fangs of CRB, the Kenya Revenue Authority (KRA) has dropped a bombshell, putting plans in place to blacklist tax defaulters on CRB.

The tax collector has been struggling with hitting revenue targets with the management attributing it to tax evasion among thousands of Kenyans. KRA failed to hit its revenue target in the last financial year by 55 billion shillings with the deficit set to double in the current year.

According to the outgoing KRA Commissioner John Njiraini, said that it is only through the listing on CRB of the “hardcore” debtors that KRA will be able to track them down.

If the proposal by KRA will be adopted, thousands of Kenyans will see their names handed over to CRB for blacklisting, further making life more difficult for them.

More Avenues to Tax Kenyans

On top of listing tax defaulters on CRB, Kenya Revenue Authority (KRA) has also proposed other revenue avenues that will see Kenyans and businesses pay more for their transactions.

KRA is now targeting online businesses, service providers and members of professional organizations that have not been paying income tax. KRA is also proposing an increase in taxes levied on gamblers.

“Most money transactions are done on digital platforms. There is a need for more clarity in the law on how these transactions can be taxed. This is to ensure that we fully capture the sector. We propose provisions to support taxation and collection of tax from economic activities carried over digital platforms,” said KRA.

Presumptive Tax

In January 201, the Kenya Revenue Authority (KRA) announced the coming into effect of the presumptive tax that is payable by all the businesses with an annual income of fewer than 5 million shillings.

According to the Finance Act of 2018, all small businesses were to start paying the presumptive tax at the rate of 15 percent of business permit fee or license payable from the 1st of January 2019.

The presumptive tax is basically going to affect all the small medium enterprises (SMEs) in Kenya. In a country where close to 500,000 SMEs are dying annually despite being a key contributor of 86 percent of employment and 45 percent to GDP, the new taxes hit the sector hard.

Presumptive tax targets all SMEs in Kenya and KRA hopped that it would help in widening its tax net.

Related Content



About Soko Directory Team

Soko Directory is a Financial and Markets digital portal that tracks brands, listed firms on the NSE, SMEs and trend setters in the markets eco-system.Find us on Facebook: facebook.com/SokoDirectory and on Twitter: twitter.com/SokoDirectory

View other posts by Soko Directory Team


More Articles From This Author








Other Related Articles










SOKO DIRECTORY & FINANCIAL GUIDE

ARCHIVES

2019
  • January 2019 (256)
  • February 2019 (216)
  • March 2019 (287)
  • April 2019 (254)
  • May 2019 (220)
  • 2018
  • January 2018 (291)
  • February 2018 (219)
  • March 2018 (278)
  • April 2018 (225)
  • May 2018 (238)
  • June 2018 (178)
  • July 2018 (257)
  • August 2018 (249)
  • September 2018 (256)
  • October 2018 (287)
  • November 2018 (285)
  • December 2018 (187)
  • 2017
  • January 2017 (183)
  • February 2017 (195)
  • March 2017 (207)
  • April 2017 (104)
  • May 2017 (169)
  • June 2017 (206)
  • July 2017 (190)
  • August 2017 (195)
  • September 2017 (186)
  • October 2017 (235)
  • November 2017 (253)
  • December 2017 (266)
  • 2016
  • January 2016 (166)
  • February 2016 (165)
  • March 2016 (190)
  • April 2016 (143)
  • May 2016 (246)
  • June 2016 (183)
  • July 2016 (271)
  • August 2016 (249)
  • September 2016 (234)
  • October 2016 (191)
  • November 2016 (243)
  • December 2016 (153)
  • 2015
  • January 2015 (1)
  • February 2015 (4)
  • March 2015 (166)
  • April 2015 (109)
  • May 2015 (117)
  • June 2015 (121)
  • July 2015 (150)
  • August 2015 (157)
  • September 2015 (189)
  • October 2015 (170)
  • November 2015 (174)
  • December 2015 (208)
  • 2014
  • March 2014 (2)
  • 2013
  • March 2013 (10)
  • June 2013 (1)
  • 2012
  • March 2012 (7)
  • April 2012 (15)
  • May 2012 (1)
  • July 2012 (1)
  • August 2012 (4)
  • October 2012 (2)
  • November 2012 (2)
  • December 2012 (1)
  • 2011
    2010
    2009
    2008
    2007
    2006
    2005
    2004
    2003
    2002
    2001
    2000
    1999
    1998
    1997
    1996
    1995
    1994
    1993
    1992
    1991
    1990
    1989
    1988
    1987
    1986
    1985
    1984
    1983
    1982
    1981
    1980
    1979
    1978
    1977
    1976
    1975
    1974
    1973
    1972
    1971
    1970
    1969
    1968
    1967
    1966
    1965
    1964
    1963
    1962
    1961
    1960
    1959
    1958
    1957
    1956
    1955
    1954
    1953
    1952
    1951
    1950