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New ITA clause seeks to publicize tax defaulters

10 October 2012, 12:38 Roggers Momata

Kenya’s Finance Minister Robinson Njeru Githae is on a rather positive move to ensure maximum revenue collection despite having approved a hefty send-off package to our self-centered MP’s in the current government. Through an amendment stated in the Income Tax Act, Githae has now made it official that the government shall from now henceforth seek to ensure that all tax defaulters be served with a notice through a print media of national circulation.

Through this, the public would be able to identify all tax defaulters who shall fail to remit their outstanding tax balances to Kenya Revenue Authority (KRA). Going by the latest development, it’s uncertain whether the law would only target corporate bodies alone or also the MPs who still ride high enjoying tax-free allowances.

In previous scenarios, KRA was well known to submit hand delivered notices to tax defaulters through its officers or better yet via their mail address. Whether this would emerge to be a concrete solution still sounds as a blur thought to the ordinary ‘Mwananchi’ who keeps on enduring the burden of a few ‘greedy lot’ subjecting the entire nation  in modern day robbery.

According to Githae’s projections, the amendment to the clause seeks to improve on the government’s revenue collection in a bid to achieve the overall targeted Ksh. 1.2 trillion mark per annum by the year 2015. Should this be attained, it would roughly account for over 40 percent increase of the total revenue collected back in June 2011 to June 2012 fiscal year.

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