Kenya Revenue Authority has refunded Value Added Tax (V.A.T) amounting to Sh11.1 billion of Sh14.2 billion owed to the private sector players in the last financial year.
Kenya Private Sector Alliance CEO Carole Kariuki confirmed receiving a letter from the taxman relating to tax refunds payments.
This follows the presidential directive that Sh10.9 billion of verified refunds be cleared before the end of June 2019.
According to Kariuki, KEPSA had previously made submissions requesting for tax refunds in excess of Sh56.9 billion owed to its members pending since April 2014-October 2018.
“It is estimated that refunds owed to manufacturers alone, amounting to Sh20 billion, would spark an annual growth of Sh50 billion in turnover in the industry – Sh6 billion in VAT collections, Sh1 billion in corporate and income taxes and create 20,000 indirect jobs,” Kariuki said.
The private sector lobby group says the move is a welcome relief adding that it will spark a positive impact on the economy.
Source: Business Daily Newspaper.