Na­tional Trea­sury pays Sh15 bil­lion in VAT re­funds, CS Rotich tells tax­man to clear back­log by end year

The Star (Kenya) - - News -

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

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