Kenyas Taxman We Are Coming For Mobile Money Transactions

18 Days(s) Ago    👁 128
kenyas taxman we are coming for mobile money transactions

In a bid to enhance tax compliance and boost revenue collection, the Kenya Revenue Authority KRA has mandated all registered taxpayers in the country to authenticate their phone numbers on the iTax system. This online platform allows taxpayers to register, file returns, make payments, and manage their tax obligations remotely, facilitating seamless tax administration.

KRA reminds all taxpayers that further to our public notice on Taxpayer Register Data Clean up Exercise dated June 24, 2024, all registered taxpayers are required to authenticate the mobile phone number registered in iTax upon logging into the system, KRA stated in a public notice this week.

The initiative aims to rope into the tax net millions of informal sector traders who utilise mobile money accounts to conduct their business. It aligns with the governments renewed efforts to broaden the tax base , eliminate tax evasion, and reduce dependency on borrowing. These efforts are part of the package of economic reforms agreed to in Kenyas 3.6bn loan program with the International Monetary Fund IMF, which ends in April next year.

In 2023, the value of mobile money transactions in Kenya increased to 7.95 trillion shillings 49bn, according to data from the central bank.

However, many traders who use mobile money remain outside the tax net. This has prompted fresh efforts to integrate KRAs systems with the over 30 million registered customer accounts of Safaricoms M-Pesa and Airtel Money.