Kenya Revenue Authority (KRA) has differed with the National Social Security Fund (NSSF) after the latter planned to collect workers’ monthly pension contributions starting December at a fee.
KRA through its commissioner for domestic taxes, Elizabeth Meyo states that the move is aimed at improving compliance and centralising the collections as opposed to having different forms for NHIF, NSSF and Pay As You Earn for the taxman.
“The unified payroll returns system was successfully completed in February this year before a pilot rollout in December. This will help reduce the cost of compliance, time and costs to taxpayers,” Ms Meyo said at the launch of the annual tax summit meeting as quoted by Business Daily.
NSSF is opposing the 1.5-2% per cent commission KRA plans to earn from the collections.
“We are against KRA seeking to deduct workers’ contributions as commission yet there is little value they are adding. There is no new strategy. KRA is simply going for soft target of workers on payrolls and yet the fund goes to places like Kibera to get collections where KRA does not have the capacity," a top NSSF executive who requested not to be named told Business Daily.
As KRA plans to start the pilot project in December, NSSF has asked it to revisit the 2016 pilot where it is yet to deliver the collected money.