The Cabinet Secretary of the National Treasury and Economic Planning, John Mbadi is calling upon the Kenya Revenue Authority to adopt technological modernization and innovation to enhance revenue collection.
Speaking during a meeting of KRA’s top leadership and staff on Wednesday, Mbadi highlighted the transformative power of technology saying that it would be crucial for reforming taxpayer services, improving operational efficiency, and enhancing revenue collection.
He urged the need for the Authority to employ technologically advanced strategies in their services saying it would streamline business processes, leverage cutting-edge systems, and simplify tax transactions.
“Our modernization journey must align with our objectives and those of taxpayers. This approach will not only benefit taxpayers but also significantly boost our revenue mobilization efforts,” said the CS.
“Our commitment to this cause is evident in our national strategic policy reforms and the ongoing modernization of revenue administration processes.”
CS Mbadi urged KRA to expand the tax base with a focus on sectors that have traditionally been hard in order to protect existing businesses from excessive taxation.
He noted that the Treasury would support KRA by developing guiding policies such as the National Tax Policy which is expected to expand tax bracket, enhance fairness and equity in the tax system and also create certainty and predictability in tax rates and tax bases.
“Through the Policy, the KRA must ensure that we achieve higher tax compliance, enhance taxpayer experience and reduce tax expenditure to minimize market distortions and tax refund pressures. As outlined in the Policy, we shall develop a framework for granting tax incentives that are time-bound and growth-oriented,” stated the CS.
The CS further added that a medium-term revenue strategy (MTRS) could be an instrumental short-term policy that helps the authority mobilise revenue collection and meet its targets. He committed to preside over a meeting on the implementation of MTRS in the course of the fiscal year as a follow-up to ensure the government achieves its targets.
“I will in the course of the fiscal year Chair the meeting of the Steering Committee on the Implementation of the Medium-Term Revenue Strategy to ensure we are all on track. The objective is to achieve a GDP ratio of 20 per cent over the medium term,” noted the CS.
