KRA Set Records Straight on Dowry Taxation Claims

KRA Set Records Straight on Dowry Taxation Claims


Kenya Revenue Authority, KRA has come out to disown claims that the organisation was contemplating imposing taxation on dowry payments in the country.

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KRA dismissed claims it was planning to impose tax on dowry payments in Kenya. Photo/File

Through its official social media pages, the taxman wondered where the claims emanated from stating that it was the first time the government agency was also hearing of the same.

Hii stori hata sisi tumeskia tu (This is just a story we have also heard of),” tweeted KRA on its twitter account.

The organisation was responding to reports that emerged on Tuesday that its board had met, discussed, and were in the process of finalising on the decision to tax all dowry payments as one way of boosting the national revenue.

According to the reports, KRA had indicated that upon successful consultation, they will be publishing the names of all Kenyans paying dowry at the end of every financial year.

Another online publication had reported that the board had put on strict measures that could ensure nobody evades the proposal after its implementation.

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Most dowry payments in Kenya are made in forms of animals or cash.

The report went ahead to reveal that the organisation’s Commissioner-General had also insisted on the need for the KRA to consider including those people who had already paid their dowry before.

It was reported that the organisation had realized that millions of money and property had escaped tax hence the need to embark on taxing it.

The report also went ahead to reveal that the taxman was losing an estimate of 15 to 21 billion shillings every year through untapped tax from dowry payments.

Recently, while speaking during the opening of the 2nd KESRA Research Conference at the Kenya School of Monetary Studies, Dr Fred Mugambi, a commissioner at KRA in charge of the Kenya School of Revenue Administration opined that policymakers should use research in backing public decisions in the search for appropriate fiscal policy.

Dr Mugambi also suggested research on whether dowry payment should be subjected to taxation or not adding that the same was an emotional issue among many Kenyan communities even though it had lately been commercialized by most of them.

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