National Treasury pays Sh15 billion in VAT refunds, CS Rotich tells taxman to clear backlog by end year
The National Treasury has paid large taxpayers 78.95 per cent of the Sh19 billion Value Added Tax refund backlog which has been outstanding since 2013, National Treasury CS Henry Rotich said yesterday. “KRA will clear the backlog by the end of next year,” the CS said during the launch of KRA taxpayers’ week in Nairobi. The taxman says the Sh19 billion tax refund backlog was filed under the old manual tax filing system. The refunds mainly accumulated from paying tax on zero rated supplies. Other factors are overpayments, credits resulting from withholding VAT system, VAT paid on bad debts or tax paid in error. KRA commissioner general John Njirani said the settlement of the refunds started after a verification and reconciliation of debt that was done early 2015. He said payments have been done in installments, staggered over different periods. “We have been processing refunds of about Sh1.2 billion every year,” he said. Njiraini said the previous VAT law was responsible for the accumulation of refunds, but that has since stabilized after the law was amended in 2013.
Treasury Cabinet Secretary Henry Rotich