Rédaction Africa Links 24 with Kenyans.co.ke
Published on 2024-03-22 07:17:16
The Kenyan government has unveiled a comprehensive plan to implement nine tax reforms aimed at enhancing revenue collection in the country. One of the key strategies outlined in the Fourth Medium Term Plan (MTP IV) 2023-2027 is the integration of Kenya Revenue Authority (KRA) systems with those of telecommunication companies. This move is expected to facilitate seamless sharing of data and information, leading to improved tax compliance and increased revenue for the government.
The integration with external systems is modeled after successful strategies implemented in the betting industry, where KRA was able to significantly boost tax collection. Additionally, the government is focusing on leveraging technology to enhance tax collection in the rental sector by digitally mapping out properties across the country. By embracing technology and data analytics, the government aims to minimize revenue risks associated with imported goods through the Customs and Border Control.
The Medium Term Plan also highlights the adoption of modern technologies such as Artificial Intelligence (AI), blockchain, and machine learning to support revenue mobilization efforts. The government aims to simplify tax processes and expand taxpayer self-service options to enhance tax compliance among Kenyans. Plans are underway for KRA to launch a USSD code through which individuals can conveniently pay taxes, as outlined in the Medium Term Revenue Strategy document.
President William Ruto’s administration is keen on increasing tax compliance among Kenyans, including those in the informal sector, to promote nation-building. The reforms will involve the implementation of an electronic tax invoice management system for efficient VAT collection and the automation of manual tax processes like exemptions and revenue reconciliation. These reforms are scheduled to be implemented from the upcoming financial year 2024/25 to the 2027/2028 financial year.
Moreover, the Medium Term Plan includes budgetary reforms that are aligned with Ruto’s Bottom Up Economic Transformation Agenda (BETA). Some of these reforms encompass the implementation of a common payroll system, efficient execution of government projects, and the rollout of an end-to-end e-Government procurement system. The government aims to streamline processes, enhance transparency, and ensure optimal utilization of resources to foster economic growth and development.
In conclusion, the tax reforms outlined by the Kenyan government demonstrate a commitment to modernizing tax systems, promoting tax compliance, and enhancing revenue collection through technology-driven strategies. By leveraging data analytics, adopting innovative technologies, and simplifying tax processes, the government aims to create a conducive environment for sustainable economic development and prosperity in Kenya.
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