//Kenya: KRA to focus on debt recovery to bridge revenue collection gap

Kenya: KRA to focus on debt recovery to bridge revenue collection gap

Kenya Revenue Authority plans to enhance debt recovery to help it meet its revenue collection targets.

KRA’s Commissioner for Domestic Taxes, Elizabeth Meyo has asked the staff to focus on pending bills, non-compliant suppliers/withholding agents/importers, and dispute resolution mechanisms to meet the targets.

Meyo said that the authority collected Sh 24.73 billion in June this year as compared to Sh 29.50 billion collected over the same month last year.

“Overall decline over the same period the last financial year is at 16 percent, having collected Sh 24.73 billion against last yearˇs Sh 29.50 billion,” Meyo said in an internal memo to the staff at Times Towers on Monday.

She said that KRA recorded a performance of 58 percent, which “honestly is a significant record owing to the current uncertain times that the continue to operate in.”

She asked the debt managers to act within the documented procedures to avoid the emergence of unnecessary disputes.

“Debt collection if not well managed can trigger staff dissatisfaction. For instance, a case under objection cannot be enforced before the stipulated time in the manual,” she advised.

She said once an agency notice has been issued, the officer who initiated the measure must be part of the lifting process; otherwise, taxpayers will not respect their role.

Meyo told the staff that taxpayers are striving to stay afloat, as they have been adversely impacted by the corona pandemic.

“It is the responsibility of all relationship and assistant managers to build a close connection with their taxpayers, reassuring and supporting them through the process so that they can continue to voluntarily comply,” she said.

She said the staff should not remain tone-deaf need to embrace a human face in appreciating the dynamics of their our operating environment.

Meyo cautioned against allowing unqualified taxpayers to applying for refunds.

“Through collaboration we have managed to process claims that are being paid out from the stimulus fund provided by the government. At the same time, we need to be on the lookout as there are instances where unqualified taxpayers are applying for refunds,” she said.

(TheStar)