KRA eyes crypto dealers in plan to raise Sh21tn in five years

Kenya Revenue Authority Commissioner General Humphrey Wattanga. [File, Standard] The Kenya Revenue Authority (KRA) is targeting to collect Sh60 billion from digital coin traders in the government's renewed efforts to have Kenyans pay taxes. The targeting of digital coin dealers such as bitcoin, famously known as forex traders, is among the efforts by KRA to collect Sh20.486 trillion in the next five years according to its newly launched ninth corporate plan. Additionally, the agency seeks to transform itself into a facilitative institution for businesses during this period even as it requested a Sh10 billion allocation to offset piling Value Added Tax (VAT) refunds. KRA board chair Anthony Mwaura, speaking during this year's Taxpayers Day celebrations at State House, Nairobi, said during the financial year 2023/24, the agency collected Sh10 billion from digital coin dealers. The money was collected from 384 dealers. He said internal conversations within KRA have revealed that there is potential to collect more from this sector. "The staff told us if we agree with the Central Bank of Kenya (CBK), within this year, we will be able to talk to those dealers and we can net Sh60 billion," he said. Mr Mwaura noted that together with KRA Commissioner General Humphrey Wattanga, he has already engaged the CBK Governor Kamau Thugge on the same. The rapid of digital sectors, where cryptocurrency dealers operate, was said to be one of the challenges that the government faces in improving collections. Others are the expansion of the informal sector and an increase in tax expenditures. President William Ruto said Kenya's current revenue collection is below the East African Community target of 25 per cent of GDP. "Our aim is to raise revenue from 14 per cent to 22 per cent of GDP within the next decade and to promote compliance from 70 per cent to 90 per cent by 2026/27," he said. "Expanding the tax base by addressing hard-to-tax sectors such as the informal economy and digital businesses will require collaboration, innovation and determination." National Treasury and Economic Planning Cabinet Secretary John Mbadi exuded confidence in KRA improving its collections citing the country's above-average economic growth that is expected to hit 5.4 per cent in 2025. He cited tax expenditures as one of the headaches besides low tax compliance and the growth of informal and digital sectors. "A lot of tax claims are also fictitious. This is costing us a lot," he said. "We are committed to re-evaluating tax expenditures to ensure that all incentives are targeted and beneficial to the broader economy." It is in the same event that KRA Commissioner General Mr Wattanga made a request to the government for a one-time allocation of Sh10 billion to offset piling Value Added Tax (VAT) refunds. The Sh10 billion was requested as a one-off allocation is meant to have the KRA attain best international practice where processing and VAT refunds are made in 30 days. Currently, KRA has attained processing within 42 days with the Commissioner General detailing the challenges the agency has in payments due to inadequate budgetary allocations. "We wish to request for a one-time allocation of at least Sh10 billion to pay a significant number of verified and approved refund claims," he said. Mr Wattanga said the agency has a target of collecting Sh20.486 trillion in the next five years and listed machine learning, artificial intelligence and data analytics as some of the disruptive technologies the agency will use to meet this target. "To achieve this we will work to ensure the active taxpayer base from the current nine million to 13 million by 2028. Our strategies include support for the dynamic sectors such as digital economy, agriculture and MSMEs," he said. During this year's Taxpayers Day celebrations, Co-operative Bank was feted with the highest growth in taxes paid award as KCB Bank Kenya Ltd emerged as the top taxpayer in the large business category. The National Intelligent Service was the top taxpayer public sector with the Directorate of Criminal Investigations (DCI) being feted as the most facilitative government agency in tax enforcement and recovery. The event is held to honour the contribution of diligent and compliant taxpayers in the growth of the country's revenue basket.

KRA eyes crypto dealers in plan to raise Sh21tn in five years

Get Full Access for Ksh299/Week.

Related Topics

Popular this week

Latest Stories

The Standard Insider

Digger Classified

GET OUR NEWSLETTER

CONNECT WITH US

FOR THE LATEST JOB ADVERTS

DIGGER JOBS

Digger Motors

Digger Real Estate

KRA eyes crypto dealers in plan to raise Sh21tn in five years

Get Full Access for Ksh299/Week.

Related Topics

Trending Now

Popular this week

Latest Stories

The Standard Insider

Digger Classified

GET OUR NEWSLETTER

CONNECT WITH US

FOR THE LATEST JOB ADVERTS