KRA Responds To Reports Of Planning to Tax Till Numbers

KRA on Tuesday, November 28 responded to a viral post doing rounds on social media, dismissing the claims that the authority was planning to raid businesses for such taxes.

Marvin Chege Marvin Chege
Nov 28, 2023 - 16:14 Updated: Nov 28, 2023 - 16:17
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KRA Responds To Reports Of Planning to Tax Till Numbers
A person using their phone. /BBC

The Kenya Revenue Authority (KRA) has dismissed claims it was planning to impose a tax on businesses which were using till numbers as a preferred mode of payment.

KRA on Tuesday, November 28 responded to a viral post doing rounds on social media, dismissing the claims that the authority was planning to raid businesses for such taxes.

"Not true. Till numbers are NOT subject to taxation, and KRA does not collect any such taxes," stated the taxman in part.

The authority also cautioned Kenyans against fraudsters purporting to collect taxes and urged them to countercheck with the authority using the official channels.

Kenyans lining up to pay their taxes. /FILE

"Beware of fraudsters purporting to do any of the above. Verify any KRA staff today on our website or by dialling *572#," added the taxman.

In the flagged post, a WhatsApp user claimed that KRA had begun tracking and shutting down businesses that failed to remit taxes after transacting via popular mobile money service providers.

The user went on to claim that the businesses utilising the providers were unable to access their daily income.

“Morning, if you have a shop or using mobile money for your business, most are being shut down (you have to pay tax for it). Customers can pay but as a merchant, you can't access your money, since yesterday.

"Thought it was maintenance but apparently most supermarkets and shops are opting out of mobile money payments, so kindly look for alternative means of payments by clients,” the flagged post read in part.

Businesses in Kenya utilise till numbers which is considered a convenient and safe way for customers to pay for goods and services.

In October 2023, the Business Daily reported that KRA had noticed a trend where business owners abandoned mobile merchant payment accounts and reverted to cash transactions since it enhanced compliance checks in major towns.

KRA deployed 1,400 Revenue Service Assistants (RSA) in September, with paramilitary training to help enhance tax compliance amongst traders, including the facilitation of online registration of businesses.

Businesspersons who have encountered the officers claimed that they have been demanding to see the premises' business permit, cash and receipt books, and mobile money statements, including till and pay bill numbers, wage schedules, tenancy agreements, and rent receipts.

KRA meanwhile has been working on a number of strategies to increase revenue collection to meet its goals.

Kenya Revenue Authority (KRA) offices along Mombasa Road. /FILE

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