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KRA’s Commitment to Simplifying Taxes: A Boon For Individuals And Businesses

BY Steve Biko Wafula · October 15, 2023 09:10 am

The Kenya Revenue Authority (KRA) is committed to simplifying taxes for individuals and businesses alike. In a groundbreaking move towards modernizing tax collection and streamlining processes, KRA has partnered with the Ministry of Information, Communications, and the Digital Economy.

Historically, taxation in Kenya has been plagued by challenges in complexity and processes. The intricate paperwork and time-consuming procedures have been some areas of concern for taxpayers. Recognizing the need for a change, KRA has joined forces with the Ministry of Information, Communications, and the Digital Economy alongside other strategic partners to revolutionize tax collection and administration.

Read Also: KRA Hosts The Annual Tax Summit: Building A Resilient And Progressive Tax System

Benefits of Simplifying Taxes

Simplifying taxes offers several benefits for both individuals and businesses. For individuals, it can make filing and paying taxes less of a hassle and more efficient. This can free up time and resources for other activities, such as running a business or spending time with family.

For businesses, simplifying taxes can reduce compliance costs and improve competitiveness. Businesses can focus on their core operations and growth, rather than spending time and money on complex tax compliance tasks.

KRA’s Initiatives to Simplify Taxes

KRA has implemented several initiatives to simplify taxes, including:

  • Introducing new digital platforms for tax filing and payment. This has made it easier and more convenient for taxpayers to comply with their tax obligations.
  • Streamlining tax procedures and reducing paperwork. This has saved taxpayers time and resources.
  • Providing clear and concise tax information and guidance. This has helped taxpayers to understand their tax obligations and comply with tax laws.
  • Educating and engaging taxpayers on tax matters. This has helped to raise awareness of tax laws and promote voluntary compliance.

Read Also: KRA Redeploys Ms Lilian Nyawanda As Commissioner Customs And Border Control

Impact of KRA’s Initiatives

KRA’s initiatives to simplify taxes have had a positive impact on both individuals and businesses. For example, the introduction of digital platforms for tax filing and payment has led to a significant increase in the number of taxpayers filing their taxes online. This has made tax compliance easier and more convenient for taxpayers and has also helped KRA to improve its tax collection efficiency.

In addition, KRA’s efforts to streamline tax procedures and reduce paperwork have saved taxpayers time and resources. For example, KRA has eliminated the need for taxpayers to submit physical tax returns. Taxpayers can now file their taxes online using the iTax platform. This has simplified the tax filing process and reduced the burden on taxpayers.

It is important to note that According to the Kenya Revenue Authority, the number of taxpayers filing their taxes online increased from 1 million in 2021 to 2 million in 2023. The World Bank estimates that the cost of tax compliance for businesses in Kenya is equivalent to 2% of GDP and that the International Monetary Fund estimates that Kenya’s tax revenue could increase by 5% of GDP if the tax system is simplified.

KRA’s commitment to simplifying taxes is a positive development for both individuals and businesses. KRA’s initiatives have made tax compliance easier and more convenient for taxpayers, and have also helped to reduce the burden on taxpayers. As KRA continues to implement new initiatives to simplify taxes, it is clear that the organization is committed to making tax administration more efficient and taxpayer-friendly.

Read Also: KRA To Facilitate Informal Sector Uphold Compliance

Steve Biko is the CEO OF Soko Directory and the founder of Hidalgo Group of Companies. Steve is currently developing his career in law, finance, entrepreneurship and digital consultancy; and has been implementing consultancy assignments for client organizations comprising of trainings besides capacity building in entrepreneurial matters. He can be reached on: +254 20 510 1124 or Email: info@sokodirectory.com

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