The Kenya Revenue Authority (KRA) is hoping to collect more than KSh.300 million from the Digital Service Tax in the year ending June 2023.
This is after the taxman collected KSh.174 million in digital taxes in the six months to December 2022, registering a significant improvement when compared to the KSh.241 million collected in the financial year that ended in June 2022.
Should the tax man manage to hit KSh.300 million this year, the tax will have recorded the highest collection since its inception in 2021.
Key digital service providers who made the lion’s share in the payments include multinational tech giants such as Google, Netflix, Meta, Twitter and Microsoft.
KRA has all indications that the new tax will keep on reaping improved results following the registration of 64 businesses in the first half of the financial year ending June 2023, against the target of 50 for the whole year.
The Digital Service Tax charges all businesses that sell services online, where they are required to pay a flat rate of 1.5% of the total services offered.
The digital service tax was born after the passing of the Finance Act 2020, where the tax came into effect on January 1, 2021, and registered a Ksh.42 million collection in the first six months to June 2021.
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