KRA pays firms Sh25bn in VAT refunds claims


KRA pays firms Sh25bn in VAT refunds claims

Times Tower. KRA Headquarters. FILE PHOTO | NMG 

The Kenya Revenue Authority (KRA) has paid firms Sh25 billion in value added tax (VAT) refunds as at last month in the face of the coronavirus crisis.

The refunds, less than half the Sh62.3 billion claims lodged, are a boost to firms struggling with cash flows amid reduced demand for their products or services in the wake of Covid-19.

“As at end of the financial year 2018/19, KRA had stock of Value Added Tax (VAT) refund claims worth Sh24.3 billion and has received additional claims worth Sh38 billion in the Financial Year 2019/2020, bringing the total value of claims to Sh62.3 billion as at June 25, 2020,” said KRA on Tuesday. “In the 2019/2020 financial year, claims worth Sh36.1 billion have been processed, out of which Sh23.6 billion have been paid out and an additional Sh1.8 billion being earmarked for payment by end of June 2020. This will bring the total tax refund payment in the financial year 2019/2020 to Sh25 billion.”

KRA Commissioner for Domestic Taxes Elizabeth Meyo said the amounts paid so far are a new record compared to the previous highest payment of Sh14.1 billion in the 2018-19 financial year.

Credit: Source link