The Parliamentary Committee on Finance and National Planning has given KRA seven days to furnish it with a list of all individuals and companies who benefitted from tax waivers, exemptions, and abandonments.
This is for the last two-year period. The committee took issue with the authority over the manner it was dealing with the issue, where the country allegedly lost over KSh200 billion.
This emerged over the weekend during a highly charged meeting between members of the committee and senior officers from KRA, at the Lake Naivasha Simba Lodge.
During the meeting, it emerged that the National Treasury, which was supposed to support revenue collection, gave waivers, exemptions, and abandonments despite opposition from the revenue body.
Read: KRA, Treasury Under Pressure Over Ksh.19 Billion Revenue Shortfall
According to the committee chairman Kimani Kuria, the country has failed to meet its budget projections in recurrent financial years, due to “illegal” waivers and exemptions.
Addressing the press at the sidelines of the meeting, he said that the majority of the waivers, exemptions, and abandonments were conducted between 2021 and 2022.
Those who benefited include powerful individuals and ministries, a Chinese company, and organizations run by powerful individuals in the country.
Read:KRA Reopens Humphrey Kariuki’s Liquor Firm After Gachagua’s Rant
The outspoken member of parliament pointed an accusing finger at Treasury for ignoring advice from KRA and giving abandonments even on PAYE, excise duty, and VAT
“We are not satisfied by the information given by KRA as we want to know who these demi-gods are, as many youths have been denied tax compliance certificates but rich individuals are been exempted,” Kuria said.
President William Ruto raised concerns in October last year, saying Kenya loses revenue in the manufacturing industry as a result of the use of fake stamps on products, in a racket that involves rogue businessmen and KRA insiders. He said the lost revenue is ending up in the pockets of people behind the production and use of the fake revenue stamps.
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