On Taxation As expected the prices of basic commodities have increased after the VAT Act took effect. Since the changes have also affected electricity charges, the costs of these commodities are expected to rise even further since energy is a high component of production. This will make life for the ordinary Kenyans even more difficult than it already is as the cost of living will go up on account of rising inflation. The changes introduced to the VAT law, we are told, are geared towards attaining simplicity in the tax regime. However, fiscal policy reforms should be entrenched to enhance tax collection so that we avoid the seemingly easier route of taxing basic commodities which hurt the common mwananchi. KRA must deepen and broaden its coverage ensure that revenue is collected from Kenyans who are currently not captured by the tax regime especially those in the huge transport and real estate sectors. KRA must also eliminate corruption within the tax system to ensure revenue is collected and seal loopholes that are exploited by tax evasion. We can raise more than the requisite revenue in this way and avoid the temptation to tax basic commodities that ordinary Kenyans depend on. As I have always said, as we seek to improve revenue management we must also curb wasteful recurrent expenditure. Controlling government’s recurrent expenditure is the only way we can put government’s appetite for revenue in check. Taxes are what decent societies pay for services. Therefore, while it is the right of the government to levy and collect taxes, it is the right of the people to get the services for which they pay. For Kenyans to appreciate taxation, the fiscal policy framework must promote fairness and justice while also ensuring that the tax we pay visibly contributes to socio- economic development by way of service delivery.
Posted on: Fri, 06 Sep 2013 14:12:07 +0000
Trending Topics
Recently Viewed Topics
© 2015