NAIROBI: Kenya Revenue Authority (KRA) has been asked to soften its stance on Capital Gains Tax to prevent a contraction in the capital and real estate markets. The Institute of Certified Public Accountants of Kenya (ICPAK), pleads with the KRA to delay the rollout in order to accommodate grievances raised by industry stakeholders.
“While the intention by the Government is to broaden the tax base, increase tax revenue collection and align Kenya with other neighbouring countries, there is need to develop a good implementation strategy to prevent a slump in the property markets, capital markets and other crucial sectors of the economy,” warned ICPAK chairman Benson Okundi.
This latest development opens another front in the battle between KRA and stockbrokers, which has since seen the taxman sued over the implementation of the tax that came into effect on January 1. Stockbrokers were charged with making declarations on behalf of their clients, a fact that did not sit well with the Kenya Association of Stockbrokers and Investment Bankers ( Kasib).
On its part, KRA maintains all the necessary consultations were done before the tax was re-introduced and those opposing it were not being sincere. KRA is looking to net some Sh7 billion over the next six months from the new tax.
