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Government and Policy

Shifting The Taxation Debate: Holding Parliament Accountable, As It Should Be, Always

BY Steve Biko Wafula · November 2, 2023 04:11 pm

Taxation is a fundamental aspect of any functioning government. In Kenya, as in many other countries, tax laws are drafted, approved, and passed by Parliament. The Kenya Revenue Authority (KRA) plays a crucial role in enforcing these laws, ensuring that individuals and businesses honor their statutory obligations. However, it’s important to recognize that the frustration and anger often directed at KRA should be redirected toward the true source of tax-related issues: Parliament.

KRA’s primary responsibility is to enforce tax laws and regulations. They collect revenue that is used to fund essential public services, such as education, healthcare, infrastructure, and security. KRA’s actions are guided by the laws put in place by the legislative branch, namely Parliament.

It is a common occurrence for the Kenyan public to express anger and frustration when KRA enforces tax regulations. However, this focus on KRA is myopic and misses the bigger picture. Instead of blaming the tax authority, it’s essential to scrutinize Parliament for the creation of these laws in the first place.

Taxes are essential for the provision of public goods and services. The revenue collected through taxation is the lifeblood of a nation, funding everything from schools and hospitals to roads and national defense. Therefore, if there are concerns about the way taxes are structured or administered, it is Parliament that needs to be held accountable.

Parliament is responsible for drafting, debating, and passing tax legislation. This includes decisions on tax rates, exemptions, deductions, and other provisions that impact how much each citizen and business must contribute to the state. When these laws are flawed or inequitable, it is Parliament’s failure.

Read Also: Where Does A Kenyan SME Stand In KRA’s Tax Amnesty?

If Kenyan citizens believe that there is a need for reform in the tax system, particularly when it comes to customs duties or other areas, they should direct their concerns towards Parliament. Reforms in taxation require legislative action and amendments to existing tax laws, which only Parliament can undertake.

The common practice of venting frustrations at KRA for tax-related issues is akin to blaming the messenger rather than the sender. KRA, as the enforcer of tax laws, operates within the legal framework established by Parliament. They are doing their job, as mandated by the law.

Parliament should be accountable to the public for the tax laws it creates and the revenue it collects. Citizens should demand transparency and a clear understanding of how their tax contributions are utilized to ensure that the money is spent effectively and efficiently.

Advocacy and public pressure can lead to change. When the public focuses its attention on Parliament and highlights the need for fair, just, and effective tax laws, it can influence lawmakers to enact reforms that benefit society as a whole.

Read Also: Tax Troubles? Amnesty’s Silver Lining Awaits!

Civil society organizations think tanks, and concerned citizens have a pivotal role to play in shaping the tax policy debate. By actively engaging with Parliament, these groups can push for better tax laws that promote economic growth, equity, and social justice.

The Kenyan public should demand inclusivity and representation in the tax legislative process. Citizens should actively participate in debates, consultations, and discussions about tax policies to ensure that their concerns are heard and considered by lawmakers.

One of the key concerns often raised by citizens is the need for progressive taxation that ensures the burden is fairly distributed based on income. Parliament has the power to revise tax brackets and rates to achieve a fairer and more equitable tax system.

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Rather than berating KRA for enforcing tax laws, the public should encourage Parliament to focus on measures that strengthen tax compliance, reduce tax evasion, and close loopholes that allow for tax avoidance.

Parliament should be urged to craft tax policies that create incentives for investment, job creation, and economic growth. Smart tax policies can promote business development, which, in turn, contributes to the nation’s prosperity.

Transparency in tax collection is not enough; citizens must also demand transparency in how tax revenues are spent. Parliament must be held accountable for the effective use of public funds.

Kenya’s tax laws are also influenced by international agreements and standards. Public attention should be directed towards Parliament’s role in these negotiations to ensure that national interests are protected.

Kenyan citizens must demand fiscal responsibility from Parliament. The development of a sustainable budget that balances revenue and expenditure is crucial for the country’s financial stability.

Redirecting anger and frustration towards Parliament, rather than KRA, is a step towards a more informed and engaged citizenry. It is only through parliamentary action that meaningful change in taxation can occur.

Collaboration between civil society, taxpayers, and Parliament is essential in ensuring that tax laws are fair, effective, and beneficial to the Kenyan public. Open dialogue and engagement can lead to a tax system that meets the needs of all citizens.

In essence, it is imperative that the Kenyan public shift their focus towards Parliament when addressing taxation concerns. By doing so, they can influence positive changes that will lead to a fairer, more efficient, and more accountable tax system that benefits all Kenyan citizens.

Read Also: Empowering Kenya’s Future: The Crucial Role of KRA In Revenue Mobilization And Tax 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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