The taxman has asked millions of small traders to immediately pay a newly introduced tax that kicks in from January or risk not getting their business permits renewed.
The Kenya Revenue Authority (KRA) yesterday said the informal traders will be required to log onto its iTax platform and pay the presumptive tax before county governments can renew their business permits — now tied to payment of the tax — for next year.
“…In accordance with Finance Act, 2018, the presumptive tax shall become payable from January 1, 2019. All eligible taxpayers are advised to pay for the presumptive tax at the time of payment for business permit fee or trade licence,” said the KRA in a notice published in the local dailies.
“Persons acquiring or renewing business permit or licence at the county shall pay this tax at the rate of 15 per cent of the business permit fee or licence payable… The taxpayers shall be required to generate a payment registration number on iTax after which they can pay through M-Pesa Pay Bill number 572572 or any other partner bank.”
This means millions of small businesses which will not have met the deadline will not have their single business permits or trading licences renewed in January.