KRA turns to tech to increase revenue collection and ensure tax compliance

The Kenya Revenue Authority (KRA) has launched a new mobile application that is to enable taxpayers to access tax services from anywhere on their devices.

The new application, dubbed the KRA M-Service App, will allow users to access services such as PIN registration, verification processes, filing their returns and making their payments. With a majority of Kenyans having access to a mobile phone, the app is convenient and easy to use.

According to Caxton Masudi, deputy commissioner policy and tax advisory, KRA is taking on an innovating approach, not just with the app, but also by shifting their focus to customer centricity. Through this, the app has been developed with particular features that allow users to interact with the KRA, breaking barriers and functionalities that were previously not possible. The new application, he said, will allow taxpayers to transact on the go and meet their tax obligations.

The tax authority is relying on this platform to widen its reach, increase revenue collection and ensure tax compliance. Therefore, to reach more people, the authority is working on expanding its reach by introducing the app on the apple store. Additionally, KRA looks to introduce the Swahili language to the app as well as introduce a USSD version for those still using feature phones to be able to access.

The platform will also be connected to the Integrated Customs Management System (ICMS) to allow importers and exporters do functions such as filling out Customs Entry Declaration Status and Passenger Declaration Forms.

The platform comes after the authority introduced a Digital Service Tax (DST), which is to take effect from January 1st, 2021 as per the Finance Act 2020. The tax, which targets firms operating in the digital market space, will be 1.5% of the total transaction value and it is due at the time of transfer of payment for the goods or service given out by the
provider. 

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