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Editorials

EDITORIAL: Innovate tax collection

 KRA
KRA should indeed be more innovative in getting them and everyone else evading taxes to pay their dues. FILE PHOTO | NMG 

That the Kenya Revenue Authority (KRA) netted an additional 1.11 million active taxpayers in the year ended June 2019 is commendable and a step in the right direction. This is especially so given the tax authority’s perennial underperformance, in terms of its inability to meet its annual targets.

Over the years, the push for KRA to do better in the collection of taxes has often led to more taxes being loaded on the formal economy. It has been the easier route for the tax authority to take, piling the heavy burden on a few.

As already evidenced, this is unsustainable in the long term and should not be the case. KRA should be more aggressive and innovative in its strategies so as to net more people and widen the tax base. While the additional 1.1 million taxpayers netted through deployment of smart technological systems in the past financial year is a good thing, a lot more needs to be done.

There is still a sizeable pool of individuals and businesses that are outside the formal sector who should but are not paying their fair share of taxes to the economy. KRA should indeed be more innovative in getting them and everyone else evading taxes to pay their dues.

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