KRA extends deadline for switch to new electronic tax registers – Business Daily
A new model of Electronic tax register (ETR) machine for automatic transmission of tax data. PHOTO | LUCY WANJIRU | NMG
Businesses have been extended two more months to acquire the new internet-enabled tax registers (ETRs) amid a supply hitch that has delayed the migration.
The Kenya Revenue Authority (KRA) extended the deadline to November 30, easing fears by manufacturers and traders who risked missing out on the deadline that was set for Friday this week.
The extension comes amid a lack of stocks that first forced KRA to extend the deadline that had been set for July 31.
The new registers will help KRA receive sales and invoice data daily in the latest push to curb tax evasion and boost revenue collections.
“KRA further advises that an administrative decision has been taken to provide additional time until November 2022 to allow the taxpayers complete this process,” the taxman says in the notice.
The ETRs will be linked to KRA’s systems through the internet, allowing the taxman to scrutinise all deals at the trader’s point of sale.
Manufacturers and traders who fail to upgrade to ETRs risk a fine of Sh1 million or a jail term of three years.
Read: Traders face Sh1 million new ETRs fine after July 1
Businesses with an annual turnover of at least Sh5 million are under the law required to have ETRs as the KRA seeks to seal revenue leakages from the big taxpayers in a bid to meet its target of Sh2.07 trillion.