Monday, September 28, 2020
Home > Counties > Nakuru > KRA sensitize traders on new tax

KRA sensitize traders on new tax

Kenya Revenue Authority (KRA) has embarked on a process of sensitizing traders across the country ahead of the introduction of the presumptive tax that comes into effect beginning of the year 2019.

According to the management authority, it has already engaged a number of County governments over the tax that targets those seeking business permits from the devolved governments.

The Authority supervisor in charge of corporate policy Unit, Leonard Cheserem said the traders will be required to pay the new tax separately with the business permit fee.

While speaking to a number of traders in Naivasha, Cheserem said that the presumptive tax would replace the turnover tax which had been in place for years.

According to him, the tax would be charged at the point of single business permit licensing and it applied to small and medium enterprises with a gross turnover of less than Sh5million.

He said the traders will be required to pay the tax directly to KRA and that the Authority was already working with the county governments to make sure that the set targets were met.

He said plans were underway to make sure that traders received their annual business permits after paying the presumptive tax to help eradicate delays and other confusions.

“The rate of the presumptive tax is fifteen percent of the single business permit or the trading license paid by the small scale traders,” he said.

KRA Naivasha station manager John Maina said that they were keen to work with traders’ inorder to help them resolve tax related issues, adding that the new presumptive tax can be paid through KRA pay bill number or through partner banks after generating a payment registration number.

On rental tax, Maina said that the authority was seeking more data from Kenya Power, water authorities and land officers on individuals with rental houses, adding that the data will help in ensuring that landlords pay the required tax according to the law.

By Esther Mwangi/Mercy Kihugu

Leave a Reply