The government is keen to sustain development through internally sourced revenue to reduce reliance on external borrowing while boosting the economy.
For this to be achieved, there needs to be closer collaboration between the tax authority and citizens. The President has been vocal about the payment of taxes and expects the Kenya Revenue Authority to collect all collectible taxes from all Kenyans, regardless of one’s position in society.
Kenya is implementing various digital solutions for efficient services. Integration of these systems with the tax authority will allow a seamless exchange of information for a 360-degree view of the taxpayers’ economic transactions.
It is expected that by end of March 2023, all betting and online gaming operators will be transmitting both daily payments and transaction data in real time to KRA.
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In addition, the adoption of software-based technologies for e-invoicing is expected to boost accuracy in tax invoice declarations and reconciliation between filed returns and payments.
Similar integration with telecommunication companies and digital platforms will enable KRA to receive real-time transaction notifications for analysis, revenue projections, and compliance enhancement.
Generally, the adoption of data and intelligence-driven field operations by key players in the government will yield successful outcomes for Kenya’s revenue collection. Other interventions may include a legislative framework to allow the National Treasury to withhold PAYE at source during disbursement.
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