The Kenya Revenue Authority has halted all tax relief payments starting February, Tuesday 28 2023.
The decision, according to KRA, is part of an aggressive revenue mobilization strategy targeted at increasing revenue collection and allocating resources to finance important growth-supporting programs.
"This move is aimed at powering the Bottom-up Economic Transformation Agenda (BETA). In addition to enhancing trust and facilitation, ICRA remains committed to provision of excellent customer service to taxpayers. The Authority will continue working closely with taxpayers to resolve arising issues for ease of tax compliance," a KRA statement read.
The enhancement is believed to be part of the government's aim to close revenue gaps and allow the KRA to collect more taxes to support the country's economic growth.
"The current suspension and ongoing review of tax reliefs is also aimed at increasing the impact of tax expenditure on economic growth," said KRA board chair Anthony Ng'ang'a in a statement.
The agency is intended to improve internal revenue by lowering tax spending and aligning it with worldwide best practices.