President William Ruto at the KRA Taxpayers Day event. Image Courtesy
President William Ruto has ordered the Kenya Revenue Authority (KRA) to collect at least Ksh 3 billion by the end of the next financial year.
While speaking on Friday October 28 at the KRA Taxpayers’ Day, President Ruto noted that the country’s GDP has grown to Ksh 12 trillion and that the taxman should double the current tax collection in the next five years.
“Our GDP has risen to KSh 12 trillion, yet KRA only raised about 14% of it in revenues last year. In the past KRA was able to raise 18% of GDP. If we collect the same target today, then would have raised an extra KSh 400 billion. I expect KRA to raise 3 trillion by the end of the next financial year and to double the current collection in five years,” President Ruto said.
In addition, the president argued that the taxman must represent equity by shifting from over-taxing trade to under-taxing wealth in order to allow the affluent to shoulder an appropriate burden.
He stated that the KRA and the National Treasury must continually interact with stakeholders to examine tax policy and make it business- and SME-friendly.
However, the Head of State stated that he was determined to making the KRA more user-friendly in order to facilitate taxpayer compliance as part of his government’s central tax strategy.
He stated that he will represent the KRA by leading Kenyans in paying taxes.
“I am determined to ensure that our tax system is responsive to the needs of the new era in Kenyan tax administration. I commit to become your ambassador by leading Kenyans in paying taxes,” the president said.
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