IMF Proposes New Tax Measures After Approving Ksh142.8 Billion Loan
The government has been presented with a set of tax measures by the International Monetary Fund (IMF) after it approves of a Ksh142.8 billion loan facility.
The international financial institution advised President William Ruto in a statement dated Thursday to implement reforms that will increase domestic tax revenue by broadening the tax base.
Conversely, the Ruto administration has been urged by the IMF to ensure adequate tax compliance.
Additionally, the action would assist the government in raising funds to satisfy its debt obligations, it was explained.
“A tighter fiscal stance is envisaged under the program to help reduce debt vulnerabilities and achieve a PV debt/GDP of 55 percent, the authorities’ debt anchor, by 2029.
“This will entail the timely implementation of reforms to broaden the domestic tax base and improve tax compliance. These are critical for achieving the authorities’ revenue objectives of reversing the trajectory of the tax revenue-to-GDP ratio while promoting equity and fairness in the tax regime,” read the statement in part.
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Moreover, the international financial organization advocated for the implementation of government-led reforms in state-owned enterprises and the improvement of the efficacy of public investments.
The e-Citizen platform is presently facilitating the digital delivery of public services; Ruto’s administration was also tasked with expediting this process.
The IMF has consistently advocated for improved implementation of subsidies ever since the inauguration of President William Ruto in September 2022.
Significantly, Ruto eliminated the petroleum and maize subsidies that President Uhuru Kenyatta had established to assist Kenyans in coping with the exorbitant cost of living.
As a consequence of the elimination of subsidies, petroleum expenses surpassed Ksh200.
The IMF asserts that the subsidy programs were frequently misapplied, benefiting only a select few Kenyans and businesses.
IMF Proposes New Tax Measures After Approving Ksh142.8 Billion Loan
