PKF has called upon the government to create a consistent tax policy that is suitable for all sectors ahead of the budget reading scheduled for April 7, 2022.
According to the Regional Tax Partner PKF Michael Mburugu, each year has something new to offer hence the different tax policies implemented each year do not provide much room for planning.
“We should be looking for a tax policy system that is certain, convenient and efficient and enables taxpayers to pay tax efficiently,” said Mburugu.
Many stakeholders have described Kenya’s tax code as complex and bulky and require firms to employ tax planners, tariff engineers, lawyers and specific accountants to offer professional advice.
“To cushion farmers from the high cost of fertilizer,the government should consider implementing a special relief on all taxes applicable on importation and sale of fertilizer in order to enhance food security,” said Mburugu.
The audit firm further warranted the rise in the debt to fluctuations in exchange rates and uptake of more domestic and external loans.
Statistics from the Central Bank of Kenya (CBK) pointed out that the gross public debt by the end of 2021 was at Ksh.8.2 trillion from Ksh.7.2 trillion by the end of 2020,as half of the debt was external while domestic debt accounted for the other half.
Mburugu also stated that its now an opportune time where the country is in need of leaders with a vision since the general elections are around the corner.