The tax agency, like others in developing countries, is grappling with strategies to meet revenue targets amid the negative economic effects of the Covid-19 pandemic.
Knowledge about various tax obligations can change taxpayer attitudes and compliance. Tax education plays a key role if voluntary compliance is to be realized.
It is almost that time the Kenya Revenue Authority runs its annual campaign to promote the filing of returns among taxpayers, resident and non-resident citizens.
The tax agency, like others in developing countries, is grappling with strategies to meet revenue targets amid the negative economic effects of the Covid-19 pandemic. For developing countries, tax base expansion is among the strategies.
Knowledge about various tax obligations can change taxpayer attitudes and compliance. Tax education plays a key role if voluntary compliance is to be realized.
Citizens who are better educated about taxes are able to easily navigate the complex tax requirements to comply. Tax ignorance has only lately been proved to damage tax morale, and as a result, will have a direct impact on compliance.
Citizens who do not understand the tax system may consider some of the taxes placed on them to be excessive or unfair. It is important to educate ignorant citizens about their tax obligations.
Citizens should also be informed of the reasons as to why they are paying taxes such as to fund public services.
Educating taxpayers is not solely the role of tax administrations but also through partnerships with institutions such as schools, business associations, and non-governmental organizations.
KRA's efforts towards educating their taxpayers both in formal and informal sectors are indisputably evident to their public ranging from their vast social media presence, elaborate tax education programs in schools both at secondary and tertiary levels and wide media presence in both print and broadcast.
The tax education program in school aims at not only implanting the culture of paying taxes right from a young age but also to influence the communities around them to embrace taxation as part of their civic duty. All these events and activities help enhance voluntary tax compliance.
Tax education is therefore needed if taxpayers will have to account for their liabilities efficiently.
Although many institutions and scholars have acknowledged the significance of tax education and the relationship it has to tax compliance, they have also expressed concern that tax education has been inadequate in informing taxpayers of their tax responsibility.
Evans Kurgat, Nairobi, via email
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