KRA should change tack on tax collection - 9 months ago, 16 Maý 21:16
The challenge facing the National Treasury is the inability to raise enough taxes to service the annual budget. For years, the Kenya Revenue Authority has failed to meet tax collection targets. Last year, the KRA missed the target by some Sh60 billion. Factors like a sluggish economy, unemployment and, prominently, tax evasion and corruption, are to blame.
Now, the National Treasury is seeking new measures to up tax collections. It has published a new law that makes several proposals to raise revenues. One of the suggestions is to introduce a 35 per cent top tax for high-income earners. The model is to get top earners to contribute more and cushion the low-end earners.
But this presents a different challenge. It is only a small percentage of workers who earn the top dollar — such that targeting those raking in at least Sh750,000 a month may not bring in much.
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