The Kenya Revenue Authority (KRA) says it does not in any way overtax Kenyan residents and companies, but instead collects what is allowed by the law.
Speaking during the Seventh Annual Tax Summit, KRA commissioner-general Githii Mburu said that the taxman has been receiving a number of complaints about over-taxation in the recent past.
”There are various complaints on over-taxation, however, we only collect what is allowed by law and not overtaxing. The good performance is driven by knowledgeable staff, a performance framework for staff and taxpayer engagement,” he said.
This comes at a time the taxman is engaging experts and stakeholders in a bid to develop a stable National Tax Policy (NTP) that will regulate taxation in the country.
“It is with that in mind that KRA has invited and received various suggestions on having a stable National Tax Policy (NTP). The National Tax Policy (NTP), when finalised by the National Treasury and Planning, will provide a set of stable guidelines and rules for regulating taxation in the country,” said KRA board chairman Francis Muthaura.
In the midst of a rapidly evolving taxation landscape, global trends, analyses and resolutions, KRA banks on the NTP for advanced ways of revenue mobilisation.
“The Digitalization of the way of doing business over the years and the advent of the Covid-19 p******c last year has changed the concept of taxation which traditionally has been based on physical presence of business and trade, the so called Brick and M****r establishments. Digital Commerce and other emerging concepts have necessitated Tax Administrations around the world, KRA included, to rethink their tax mobilisation concepts to fit within the ever-changing world of technology,” added Muthaura.
According to Anthony Munanda, a technical advisor for the African Tax Administration Forum (ATAF), there is a need to look at significant changes in tax rules and to address the issues between revenue sources and the residents.
The NTP is expected to harmonize tax collection and offer simplicity in the policy framework. It helps with the agility and dynamism of the tax regime and attracts investors by offering consistency.
“National tax policy would challenge and create opportunities for the taxman as well as include international organizations. Economic liberalization has implications for domestic capitalization,” said Prof Philip Nying’uro, Professor of Political Science and International Relations, UoN.
KRA will use the summit to modify and improve tax administration, grow the tax base and
subsequently, enhance revenue mobilisation.
KRA collected Ksh476.646 billion, surpassing the Financial Year 2021-2022, Quarter One (July – September 2021) revenue target of Ksh461.653 billion by Ksh14.992 billion. The performance reflects sustained revenue growth in the first three months of the year, with a performance rate of 103.2 percent and growth of 30 percent.
Despite the slow economic growth, KRA commenced the new financial year on an upward trajectory, after surpassing its July 2021 revenue target with a surplus of Ksh311 million, after a revenue collection of Ksh152.854 Billion against a set target of Ksh152.543 billion, reflecting a performance rate of 100.2 percent.