National Treasury and Planning Cabinet Secretary (CS), Ukur Yatani, has said that the government will continue to implement tax policies that promote a friendly operating environment for all taxpayers.
Yatani said the taxes will not only enhance expansion of the tax pays for domestic resource mobilisation, but ensure that revenue collection will be undertake without overburdening the taxpayers.
The CS made the remarks, today, in a speech read on his behalf by the Chief Administrative Secretary (CAS) in the Ministry of National Treasury and Planning, Eric Wafukho, during the launch of the 7th 2021 Annual Tax Summit, at KRA Headquarters.
The two- day summit brought together members of the public, think tanks from various sectors, academicians, policy experts from across the country, public sector players, policy makers and private sector to deliberate on opportunities and solutions to the existing tax administration challenges.
He encouraged all players to take part in the discussions that will help the government to enhance revenue collection and policy making.
“KRA’s role of revenue mobilisation is central in achieving various national policy objectives and the country’s development agenda,” said the CS, noting that tax policies are well thought before implementation and whenever introduced are always for the good of all sectors.
The KRA Board Chairman, Dr Francis Muthaura, said that contributions during the tax summit 2021 will be considered in developing the national tax policy that will provide national guidelines for taxation.
He, however, commented that tax policy role is impacted by the ever changing economic and taxation landscape across the globe.
“The Digitalization is the way of doing business and the advent of the Covid-19 pandemic changed the way of doing business and has necessitated rethinking of tax mobilisation strategies,” said Muthaura.
Speaking at the same function KRA Commissioner General Githii Mburu said Kenya had shared its technical concerns and was party to the ongoing developments spearheaded by the OECD and G20 countries.
“The introduction of the Digital Service Tax in Kenya had helped curb tax avoidance by multinational firms engaged in digital enterprises. With the growing revenues generated from such MNE’s, Kenya will consider the benefits of the Inclusive Framework cautiously,” said the Commissioner General.
The Country, Mr Mburu said, will clinically analyse benefits accruing from the proposed framework and will not rush to forego current benefits arising from the implementation of the Digital Service Tax.
“Although we have not signed the agreement, Kenya is fully aware of the developments, and I can confirm that we are party to these engagements, as a trendsetter on matters of digital taxation. We have already shared our technical concerns on the all-inclusive framework thresholds, and we will continue engaging to ensure that we have a win-win outcome,” Mr Mburu assured.
By Hamdi Mohamud
