With the shift towards globalization, the sacrifice of customs revenue at the altar of cross-border trade has meant governments have had to go back to the drawing board for creative solutions aimed at bridging the revenue shortfall from domestic taxes – income tax, VAT and excise duty. However the spotlight is now more focused on consumption taxes arising from the increased volume in trade.
For the past couple of years Kenya Revenue Authority’s good performance has been buoyed by a favourable economic environment, commendable steps aimed at reeling in more people into the tax net and improving overall tax administration particularly addressing revenue hemorrhage through innovation and cost effective means of collecting taxes.
