KRA urges traders to comply with the new VAT laws
25 September 2013, 12:18
Nairobi - Kenya Revenue Authority (KRA) has issued a stern warning to retailers who do not adhere to the new value added tax law.
“Non-adherence to the new VAT tax legislation will attract a three year jail term,” KRA stated.
The warnings follow revelations some retailers continued imposing tax on exempted commodities.
Last week, the government arrested some business owners who included the VAT on basic commodities and dispatched some other 400 officers to continue with the exercise.
The measures came a few days after the official opposition Coalition for Reform and Democracy vowed to introduce an amendment motion in Parliament to repeal the VAT Bill 2013 that was passed in the House.
Meanwhile, Kenyans received a major boost after KRA exempted milk and bread from the 16 percent VAT.
Previously, the list of basic commodities exempted from the tax included sanitary pads and maize floor among others.
The exemption aims to lessen the burden of the taxpayer.
“Milk products will not be exempted from the tax,” stated the KRA.
– CAJ News