- KRA has also integrated betting and gaming companies into the tax system.
- KRA also aims to onboard more taxpayers previously not paying taxes through the Tax Base Expansion (TBE) programme.
The new Kenya Revenue Authority (KRA) boss is confident the tax collector will hit its Sh2.768 trillion target by the end of the 2023/2024 financial year and surpass the Sh3 trillion mark by the 2024/2025 financial year.
Commissioner General Humphrey Wattanga said to achieve this, KRA is implementing both tax administrative measures and tax policy reforms
He said KRA will implement the National Tax Policy and the Medium-Term Revenue Strategy (MTRS) for the period FY 2023/24 - 2026/27.
“The authority is also implementing the taxation at the source programme to enhance compliance. This programme allows KRA to collect information and revenue directly at the source of income on a real-time basis,” said Wattanga.
His remarks were contained in a speech read by KRA deputy commissioner in charge of corporate policy Moriss Orei at the opening of the 11th Annual Tax Convention in Mombasa on Tuesday.
The convention brings together tax experts, practitioners, policymakers and taxpayers to discuss to tax policies, proposals and implementation challenges in Kenya and across the globe.
This conference is themed: 'Taxation for Economic Transformation and Sustainable Development'
Wattanga said that KRA has also implemented the Electronic Tax Invoice Management System (eTIMS) which has minimised VAT fraud and increased tax revenue.
KRA, he said, has further integrated betting and gaming companies into the tax system.
“The integration has given KRA real-time access to all companies in the gaming and betting sector. This enabled KRA to collect Sh15.190 billion in excise duty in the financial year 2022/2023,” Wattanga said.
He said KRA aims to onboard more taxpayers previously not paying taxes through the Tax Base Expansion (TBE) programme.
This will include the recruitment of landlords under the Monthly Rental Income (MRI) obligation and Block Management System (BMS) to map out potential taxpayers.
Through the programme, KRA recruited 940,483 additional active taxpayers in the financial year 2022/2023.
Outgoing Institute of Certified Public Accountants of Kenya (ICPAK) George Mokua called for concerted efforts and synergy to make tax collection a successful, saying every development that Kenyans might think of rises and falls on taxation.
“The timing of this convention comes at a critical point when the Kenyan government targets to grow tax revenues above 17.8 per cent of GDP in the financial year 2023/24 and above 18.0 per cent of GDP over the medium term,” he said.
He said to boost revenues, the government must revitalise performance in all economic sectors in order to foster growth, create jobs, poverty reduction and ultimately improve livelihoods.
Mokua said taxation provides a critical source of finance to governments to deliver public services that are vital for sustainable development.
“It is worth noting that budget pressures, inflation, and inadequate revenue generation measures dictate that sound tax management is essential for the government to provide public services to its citizenry,” he said.
To fund the economic turnaround and inclusive growth plan, the government he said aims to generate revenue of Sh3 trillion in the budget year 2023/24 and about Sh4 trillion over the medium term.
“This will be achieved through a combination of tax policy and administrative reforms aimed at reducing tax gaps, enhancing revenue per unit, and increasing tax compliance rates,” Mokua said.
He said those tasked with undertaking taxation must demonstrate strong ethics and high integrity, data security focus, customer service orientation and operational excellence.
They also require public service commitment, continual learning and professional development and a spirit of collaboration.