Ruto Reiterates Government’s Commitment To Enhance Efficiency Of The Tax System

President William Samoei Ruto has reiterated the Government’s commitment to make taxpaying in the country simple by enhancing efficiency in tax system. The president appreciated KRA for undertaking technological reforms to ensure a more effective and convenient tax system.

Speaking during the 2023 Taxpayers’ Day the President said “What is required is exercise of greater imagination, commitment to national values and principles of governance, and the use of technology and innovation to improve service delivery. I note with appreciation that the KRA has been undertaking reforms in this direction, which include the use of technology to integrate the taxpayer and revenue administration systems to allow real-time, automatic exchange of actionable data.” Said the President.

The President said that the recently recruited Revenue Service Assistants were part of KRA’s move towards undertaking a comprehensive culture change aimed at aligning with the revenue mobilization imperatives of a new constitutional dispensation, governing platform, strategic realities, and economic conditions.

Read Also: KRA Collects Ksh 3.4 Billion From Tax Amnesty Program

“This is the spirit in which the KRA recently recruited specially trained Revenue Service Assistants, as a move to enhance its revenue mobilization capacity and taxpayer compliance through service-oriented, citizen-centric methods of facilitating voluntary compliance in keeping with our fundamental commitment to decriminalize enterprise, and enable all levels of business from micro-, small and medium-sized enterprises, all the way to global multinational companies to meet their obligations.” Noted the President.

Speaking during the event, Cabinet Secretary  National Treasury and Planning Prof. Njuguna Ndung’u clarified that KRA had not introduced more taxes on personal effects as reported in the media. He said that tax changes are effected through a  formal process including the review of the Finance Act.

“Allow me to refer to media reports that the Government has introduced more taxes and targets to charge additional taxes on personal effects of traveling passengers and visitors at the point of entry. We have a formal process through which we affect changes to the Tax Legislation, usually through the Finance Bill. The last time we made changes to the tax laws was in June 2023 through the Finance Bill 2023 which was enacted and is currently under implementation. I, therefore, wish to assure our visitors and all travelers to this country that no new taxes have been introduced and that the process at our entry points is smooth and diplomatic and the Customs Officers of KRA have been instructed to ensure this process remains seamless and should not mishandle our visitors and travelers.” Said Prof Ndung’u.

KRA Commissioner General Mr Humphrey Wattanga said KRA has devised strategies aimed at broadening the tax base. Among the strategies employed include developing and implementing initiatives towards equitable taxation of wealth.

“KRA recognizes the imperative transition from an overreliance on taxing trade, to a more equitable taxation of wealth, ensuring that high-net-worth individuals bear their rightful share of the tax burden. Our strategic focus, therefore, revolves around optimizing wealth taxation and expanding the tax base to promote equity in tax contribution.” Said the Commissioner General. He added that KRA has further implemented various strategic initiatives, all geared towards enhancing revenue collection and the attainment of the revenue targets.

During the event, several top taxpayers were awarded for their excellent performance in their various tax obligations and having directly contributed to the country’s economic sustainability in the last financial year (FY 2022/2023). The taxpayers, both individuals and organizations were acknowledged for upholding compliance. Taxpayers’ Day is organized annually to extend gratitude and honor esteemed compliant taxpayers for their contribution towards the country’s economic development.

Read Also: KRA’s Generous Gift This Taxpayers Month: Tax Amnesty Wipes Away Interest And Penalties Up To Dec 31, 2022