KRA sets up team on VAT Act after uproar over increase in prices
Kenya Revenue Authority commissioner-general John Njiraini during a media breakfast briefing on implementation of the new Value Added Tax 2013 Act at the Times Tower in Nairobi on Friday. The Kenya Revenue Authority (KRA) has set up a 30-strong team to respond to queries on implementation of the newly enacted Valued Added Tax Act 2013. Among the implementation issues were an increase in prices of both goods that were exempt and those that had standard VAT imposed and treatment of the stocks already procured.
KRA clarified that what mattered was the classification of a good or service and not whether it was in stock or not. If a person was registered, they had no choice but to charge the VAT, the taxman said.
“Goods in stock which were exempt prior to September 2, 2013 and were bought without VAT and are now taxable should attract 16 per cent VAT,” said a statement by KRA. During a breakfast meeting with the Press last Friday, KRA commissioner-general John Njiraini said traders were able to increase prices beyond what was justified by the imposition of 16 per cent VAT because of limited competition in some sectors.... Read the full, comprehensive news article and discuss at Business Daily AfricaSimilar Stories