MPs put KRA on the spot over Sh2.15bn sugar tax reversal
According to documents submitted to Parliament, the importer eventually paid Sh511.8 million in taxes, including VAT and other charges.
According to documents submitted to Parliament, the importer eventually paid Sh511.8 million in taxes, including VAT and other charges.
Figures released by the tax authority show revenue collected through ADR climbed to Sh35.06 billion in the 2025/26 financial year, up from Sh15.3 billion recorded the previous year, translating to a 129.22 per cent increase.
Under the new law, natural persons will be required to submit their returns by the end of the fourth month after the close of their year of income, while non-natural persons will have until the end of the sixth month after the close of their year of income.
In a public notice issued on Monday, KRA informed licensed manufacturers, importers and members of the public that bottled water produced or brought into the country from the effective date will no longer attract excise tax.
Under the programme, eligible taxpayers will receive a 100 per cent waiver on penalties, interest and fines once they settle the principal tax within the amnesty period. The relief is conditional on payment of the main tax owed within the set timeline.
The move introduces electronic application, processing and verification procedures that KRA says are intended to improve efficiency while enhancing oversight within the cargo transport chain.
According to the anti-corruption agency, the arrests followed an operation launched after a formal complaint was lodged by the taxpayer.
The National Assembly passed the Finance Bill, 2026, in its Third Reading with 122 votes in favour against 40 nays. The vote is among efforts by the government to fund the Sh4.8 trillion budget for the 2026-27 fiscal year.
Under the plan, the Authority will roll out the Anti-Counterfeit Security Device, a digital mark that will be fixed on designated products and can be verified in real time using mobile phones or scanning equipment.
Gachagua also cautioned that MPs who skip the vote would be seen as taking a position against the interests of ordinary citizens, arguing that absence in such a decision cannot be neutral
National Treasury says Finance Bill 2026 will amend the Tax Procedures Act so collection for Commissioner-favourable judgments only stops with a stay order. Business leaders and tax experts warn it may pressure firms during ongoing tax appeals and tribunal processes.
Some participants also raised objections to taxes on betting winnings, saying such earnings are relied upon by many households as a source of income and should not be further reduced through additional deductions.