Business entities hard-hit by the coronavirus pandemic will get Ksh10 billion VAT refund from Kenya Revenue Authority (KRA) in the fresh drive.
KRA on Saturday said that it has already begun the refund in compliance with President Uhuru Kenyatta’s directive last month.
Uhuru had ordered the refunds to help business gain financial stability after the coronavirus pandemic crippled their operations.
“We have began paying various businesses entities VAT refunds from special funds allocated by the government and released to KRA and expect to finalise the payments process in one week,” commissioner for domestic taxes Elizabeth Meyo said in a statement on Saturday.
She added that the refund is only for “those business entities that have had their refunds claims verified in line with procedures will receive payments.”
Businesses set to benefit from KRA’s VAT refund include those in the hospitality, transport, agricultural and horticultural sectors.
KRA owes exporters and manufacturers in the country Ksh27 billion in VAT refunds.
The National Treasury in April said that it will release Ksh10 billion for tax refunds starting April 24.
CS Ukur Yatani also said that the government would release Ksh13 billion to clear pending bills which has also crippled may industries and manufacturers.
Of the KSh56 billion allegedly owed by the State in pending bills, Ksh43 billion has been contested.
KRA has also rejected Ksh6.1 million VAT refund claims for the year ending 2019. The authority said that the rejection came after a thorough scrutiny of all applications presented.