All adults with the Huduma Namba will be converted into taxpayers. This will see the taxman’s revenue base expand from the current 5.5 million.
According to a report that appeared in a local daily on Tuesday, the changes will ensure that children who hold the Huduma Namba will be automatically listed as taxpayers when they attain the age of 18 years.
The Huduma Namba is no set to replace KRA PIN Number in a move by the government that is aimed at squeezing tax cheats in the country. These changes will be effected through the Huduma Namba Bill, 2021, which is seeking to amend the Tax Procedure Act to make biometric ID the key number for identifying taxpayers.
Following this change, all Kenyan adults will need the Huduma Namba to access government services, such as getting treatment at all government hospitals, marrying or filing tax returns.
The Bill also requires the KRA and other agencies to validate foundational data of individuals under their custody with the NIIMS database. “Upon the commencement of this Act, any agency responsible for a matter set out shall validate foundational data of individuals under their custody with the NIIMS database-registration of taxpayers,” the Bill states.
It also defines foundational data to include an individual’s full name, date of birth, place of birth, gender, photograph, biometric data and nationality. In the new changes, Kenyans who declare any false information will risk fines of up to Sh. 3 million or three years imprisonment.
“Huduma Namba assigned to an individual under the Huduma Act, 2021 shall serve as PIN for the purpose of tax law,” the Bill says. “On completion of initial enrolment of resident individuals under the Huduma Act, the Commissioner (KRA) shall activate tax obligation of every resident individual above the age of eighteen years not registered as a taxpayer.”