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Daily Nation : February 25th 2014
DAILY NATION Tuesday February 25, 2014 REVENUE | Authority acts to seal the loopholes through which revenue is lost KRA to go all digital next week Taxman says from March 1 there will be no more manual returns from payers BY RAMENYA GIBENDI firstname.lastname@example.org. AND MWANIKI WAHOME email@example.com T he Kenya Revenue Authority is set to completely digitise its revenue col- lection system beginning next week as the taxman moves to seal revenue leakages. In a newspaper notice yes- terday, the authority said it will not accept manual reports from March 1, as all taxpayers will be expected to use the online iTax system to file returns. The iTax system was launched by KRA in October last year and has been in use by large and medium taxpayers. The authority now wants to expand it to other taxpayers. Will be rolled out “All the large and medium tax- payers have been using iTax, but it is being rolled to all taxpayers now,” said iTax project manager, Eutycus Kariuki. iTax is a platform that allows taxpayers to register, file returns and pay their dues online. Currently, 24 banks have been integrated into the system. In using the system, the authority is looking to reduce logistic costs while minimal interaction between taxpayers and staff is expected to cut down bribery claims. KRA is using technology to seal revenue leakages across its operations as it rushes to meet high tax collection target. Last week, the authority said it would roll out second generation excise stamps to a wider category of goods. It is also mapping properties in the country as it seeks to expand the tax base to meet a Sh973 billion collection target. However, some of the govern- ment’s tax reforms have come under criticism from civil society organisations who say the policies are exacerbating income inequalities. The rich escape In a report released yesterday, Tax Justice Network Africa, a local NGO, and international development agency Christian Aid said rich Kenyans often escape the taxman while the poor are weighed down by the levies. The report, Africa Rising?: Inequalities and the essential role of fair taxation, notes that while basic commodities are being taxed heavily, Treasury has failed to initiate the Capital FILE | NATION Scenes of customers lining to pay their dues will be a thing of the past from next week when the Kenya Revenue Authority goes completely digital. All the large and medium taxpayers have been using iTax but it is being rolled to all taxpayers now” iTax project manager Eutycus Kariuki Gains Tax, which would target higher income taxpayers. “While Kenya’s tax system should be an important level to address income inequality there is no evidence this is occurring effectively in practice,” reads the report in part. Further, the local tax system is skewed against those in formal employment. The self-employed, who sometimes earn more, hardly pay 973 The amount of money in billions of shillings that the Kenya Revenue Authority targets to collect REPUBLIC OF KENYA PLOTS FOR SALEISENYA PLOTS These plots are in Isinya. They are about 2Kms on pipeline Road, 2Kms off Namanga Road COUNTY GOVERNMENT OF KAKAMEGA The County Treasury PUBLIC NOTICE Approx. Size: 50ft X 100ft Freehold titles- Ready Residential Location: 1. Before after Kisaju- on the right side 2. 2Kms on pipeline Road, 2Kms off Namanga Road Price: 1. Kshs 650,000 2. Price inclusive of legal fees, transfer fees and stamp duty Viewing on arrangement FINANCE AVAILABLE The Governor of the County Government of Kakamega, H.E. Hon. Wycliffe Ambetsa Oparanya, EGH has assented to the Finance Bill, 2014 and therefore it is now enacted into law as passed by the County Assembly for the purpose of revenue raising measures towards financing of the 2013/14 fiscal year budget. All the rates of fees and charges therein shall now be applicable for the year 2014 The County Treasury. any charges. Illicit flow of funds to off- shore accounts promoted by local and international business groups, is also harming the economy. Tax Justice Network and Christian Aid recommended an overhaul of Kenya’s income tax policy as well as a reduction of tax exemptions. 31 Sh86bn to boost power firm output BY NATION REPORTER Kenya Power plans to spend Sh86 billion to upgrade its electricity distribution infrastructure countrywide over the next three years. According to company chief executive Ben Chumo, planned projects include construction of new substations and power lines, and enhancement of existing network. This will go towards ensuring a stable and reliable power supply. “Availability of adequate power supply is critical to industrial and commercial investors in the devolved system of government. That is why the government is driving the initiative to increase power supply,” Dr Chumo said. Reliable supply The power company boss spoke during the commissioning of a new substation in Thika, Kiambu County. The latest substation was built at a cost of Sh642 million. The company has invested Sh4.5 billion towards construction of substations in Githunguri, Gatundu, Rironi, JKUAT, Dagoretti, Lower Kabete and Magumu areas. The announcement comes after the Jubilee government launched a plan in September last year to increase local electricity production by 5,000 megawatts in 40 months. The ambitious plan will sig- nificantly raise the installed generation capacity, currently estimated to be about 1,600 megawatts. This demands reliable infrastructure to distribute power to consumers. Republic of Kenya County Government of Kakamega The County Treasury PUBLIC NOTICE Notice is hereby given to owners of all forms of outdoor advertisements and signages on buildings, on streets, along fences and building common areas to avail their contacts and obtain invoices from the County Treasury for 2014. The signage above shall remain removed by the County Treasury failure to obtain and settle the invoice sum within twenty one (21) days from the date of this notice. The proprietors of the said signage will also bear the cost of removal. The County Treasury.
February 24th 2014
February 26th 2014