At Kenya’s Taxpayers’ Day celebration on November 1, the government revealed that the country collected $77.5 million in crypto tax over the last year. The Kenya Revenue Authority (KRA) obtained KES 10 billion from 384 crypto traders in the fiscal year 2023-2024.
KRA Chairman Anthony Mwaura highlighted the Kenyan crypto market’s first-ever contribution to national tax revenue. At a gathering at State House, Nairobi, Mwaura said the KRA plans to collect $465 million in taxes from the crypto sector alone. Over the next five years, the authority aims to accumulate $15.88 billion in tax revenue, with the crypto sector expected to be a key contributor.
Mwaura emphasized the need for collaboration to find ways to effectively tax cryptocurrency activities. He explained that many individuals involved in cryptocurrencies are willing to pay taxes, but the KRA currently lacks the means to reach them. Mwaura expressed optimism that by working with the central bank and engaging with those in the Bitcoin and broader crypto space, the KRA could collect as much as KES 60 billion (approximately $465 million).
Read also: Kenya Shuts Down Worldcoin’s Activities Over Privacy Concerns
With Kenya’s ambitious target of $465 million in crypto tax, the KRA is seeking support from the country’s digital coin traders. The KRA also wants to transform itself into a more business-friendly institution over this five-year period. The agency has requested a nearly $83 million allocation to clear the pending Value Added Tax (VAT) refunds.
To achieve its goals, the KRA launched a new real-time tax system that integrates crypto exchanges. The new system will allow regulators to monitor these exchanges’ crypto activities and collect taxes accordingly. The agency estimates the Kenyan crypto market saw transactions worth $18.5 billion in 2021-2022, accounting for nearly 20% of the country’s GDP.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
Read the full article here
