KRA seeks to collect Ksh.6.8 trillion over the next three years
The Kenya Revenue Authority is estimating to collect Ksh.6.8 trillion over the next three years as it seeks to expand its tax base to fund the National Treasury’s budget.
The taxman seeks to increase the number of active taxpayers by an additional two million from the agriculture, real estate, digital economy and informal sectors, to generate the increased taxes.
“The goal is to collect Ksh.6.8 trillion over the next three Financial Years… Ksh.4.85 trillion has been the collection in the last three years and this can be achieved by sealing all our loopholes and increasing our tax base,” said KRA Commissioner General, Mburu Githii.
It is expected that the exchequer revenue will rise from Ksh.1.76 trillion in 2021/22 to Ksh.2.5 trillion in 2023/24.
Speaking during the launch of the 8th Corporate Plan, National Treasury CS Ukur Yatani said KRA gives up taxes to the private sector accounting for about 6% of the GDP in tax incentives. He further stated that the benefits do not get to the intended parties.
“We have given a lot of tax breaks to many institutions who have not been passing the benefits to Kenyans, we are the highest in the world with about 6% of GDP in tax incentives,” said Yatani.
According to the CS, in order to strengthen compliance and enforcement, KRA should simplify the tax processes, forms and technology links, implement tax policy reforms to ensure stability and clarity of tax laws.
He further recommends that KRA expedite the roll out of simplified online self-care services that will make it easy for the stakeholders to comply hence increasing customer satisfaction.
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