Ruto Reveals 9 Tax Measures, Including Integrating KRA Systems With Telecommunication Companies
The government has announced intentions to implement nine tax reforms, including the integration of Kenya Revenue Authority (KRA) systems with those of telecommunications firms.
As per the Fourth Medium Term Plan (MTP IV) 2023-2027, inaugurated by President William Ruto on March 21st, it was clarified that incorporating external systems would lead to an increase in government revenue collection.
This approach mirrors the strategies employed in the betting industry, resulting in the Kenya Revenue Authority (KRA) generating billions more in tax revenue from that sector.
Moreover, the government aims to enhance tax collection within the rental sector by leveraging technology and systematically mapping properties nationwide.
“The tax reforms also include rolling out measures leveraging on technology and enhanced data analytics at the Customs and Border Control to reduce revenue risk on imported goods,” read the Medium Term plan in part.
“Strengthening big data analytics and adoption of modern technologies such as Artificial Intelligence (AI), blockchain and machine learning to support revenue mobilization.”
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Furthermore, the government plans to improve tax adherence among Kenyan citizens by streamlining different tax procedures and broadening self-service options for taxpayers.
Significantly, the Treasury had previously announced intentions for the Kenya Revenue Authority (KRA) to introduce a USSD code for tax payments, as outlined in the Medium Term Revenue Strategy document.
Additionally, Ruto’s government aims to increase tax compliance among Kenyans, with officials highlighting the need to devise strategies for involving individuals in the informal sector in contributing to the country’s development.
“The reforms include the implementation of an electronic tax invoice management system for efficient and effective VAT collection and the automation of manual tax processes including exemptions and revenue reconciliation,” read the document in part.
Significantly, the reforms are set to take effect starting from the forthcoming fiscal year of 2024/25 through the fiscal year 2027/28.
The medium-term plan also outlines fiscal adjustments that the government believes will support Ruto in realizing his Bottom Up Economic Transformation Agenda (BETA).
Several budgetary reforms entail introducing a unified payroll system, streamlining the execution of government projects, and deploying a comprehensive e-Government procurement system from start to finish.
Ruto Reveals 9 Tax Measures, Including Integrating KRA Systems With Telecommunication Companies
