KRA to Link eTIMS with Fuel Stations by June 2025 to Curb Tax Evasion

The Kenya Revenue Authority (KRA) plans to integrate its electronic tax invoice management system (eTIMS) with fuel stations by June 2025 to combat tax evasion and enhance revenue collection through real-time tracking of fuel transactions. With the new system, every petrol or diesel purchase will automatically generate an eTIMS receipt, giving the tax agency full oversight of sales activities and reducing fraudulent VAT claims. Currently, some dishonest traders exploit unclaimed fuel receipts to secure VAT refunds for expenses they never incurred. This enhanced system will also enable KRA to monitor fuel consumption patterns, focusing on individuals or businesses with high spending but low tax compliance. KRA emphasizes that the initiative aims to improve accountability in tax remittance.The Kenya Revenue Authority (KRA) plans to integrate its electronic tax invoice management system (eTIMS) with fuel stations by June 2025 to combat tax evasion and enhance revenue collection through real-time tracking of fuel transactions. With the new system, every petrol or diesel purchase will automatically generate an eTIMS receipt, giving the tax agency full oversight of sales activities and reducing fraudulent VAT claims. Currently, some dishonest traders exploit unclaimed fuel receipts to secure VAT refunds for expenses they never incurred. This enhanced system will also enable KRA to monitor fuel consumption patterns, focusing on individuals or businesses with high spending but low tax compliance. KRA emphasizes that the initiative aims to improve accountability in tax remittance.