- The Kenya Revenue Authority (KRA) has missed its revenue target for the first quarter of the current financial year by Sh79 billion.
- Despite missing its target, the tax man recorded a revenue collection growth of 8.4 per cent in the first quarter of the FY 2023/2024.
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Nominated MP John Mbadi has stated that the rising taxes on Kenyans was the first mistake made by the President William Ruto-led administration.
"We agree that the debt level is unmanageable, but the mistake govt is making is to imagine it will collect more from Kenyans by increasing taxes. The moment you start attacking people's salaries, they stop spending," he said on Tuesday.
Mbadi, who is also the ODM chairman was speaking during an interview at NTV.
He further said the county had become counterproductive and this has been seen by the revenue collection for the first quarter of the Financial year 2023-24
The Kenya Revenue Authority (KRA) has missed its revenue target for the first quarter of the current financial year by Sh79 billion.
KRA Commissioner-General Humphrey Wattanga told the National Assembly’s Finance Committee that slow economic growth, low oil imports tax exemptions on food-related items and failure by some government entities to remit pay-as-you-earn (PAYE) contributed to the failure to meet revenue targets.
Despite missing its target, the tax man recorded a revenue collection growth of 8.4 per cent in the first quarter of the FY 2023/2024.
This is after the authority collected Sh586.9 billion in the period July-Sept 2023 compared to a collection of Sh541.6 billion during the same period last year.
Mbadi further said that the State by taxing people more has sent the wrong signal and Kenyans are tightening their belts.
"The moment you start attacking people, suddenly, people start consciously because they believe they don't have enough money and your affecting the economy. Such that if you increase production, you will have no people to buy those goods," he added.'
Giving recommendations, the ODM legislator stated it is a fact that the whole world is facing an economic problem that needs to be addressed.
Some of the economic problems are the effects of Covid -19, the Ukraine-Russia war among others mentioned by the MP.
Coming to Kenya, Mbadi said that the government ought to have stabilize the economy first.
"To address this the government should stimulate the economy and you cannot do this when you are shrinking the domestic demand," he said.