The Kenyan government has urged the Kenya Revenue Authority (KRA) to adopt innovative and technologically advanced strategies to enhance revenue collection.
This comes as the KRA continues to implement a series of effective initiatives and robust policy reforms aimed at fulfilling its mandate to collect revenue on behalf of the government.
Cabinet Secretary for the National Treasury and Economic Planning, John Mbadi, said there was need for innovation during a meeting with KRA’s leadership and staff on Tuesday.
Modernizing Business Processes
Mbadi said modernizing business processes, leveraging cutting-edge systems, and simplifying tax transactions are key steps in this direction.
“Our modernization journey must align with both our objectives and those of taxpayers. This approach will not only benefit taxpayers but also significantly enhance our revenue mobilization efforts,” stated CS Mbadi.
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According to the CS, its crucial role in reforming taxpayer services, improving operational efficiency, and ultimately boosting revenue collection.
“Through the implementation of our policy, the KRA must work towards achieving higher tax compliance, enhancing the taxpayer experience, and reducing tax expenditure to minimize market distortions and tax refund pressures.
Medium-Term Revenue Strategy Implementation
As outlined in our policy, we will develop a framework for granting time-bound, growth-oriented tax incentives,” Mbadi added.
The newly appointed CS announced his intention to chair the Steering Committee on the Implementation of the Medium-Term Revenue Strategy during the current fiscal year.
The committee is looking to help the KRA achieve a tax-to-GDP ratio of 20 percent over the medium term.
KRA Commissioner General Humphrey Wattanga, speaking at the same meeting, revealed plans to overhaul the Authority’s IT infrastructure.
He said reliable and responsive systems is key to meeting the demands of businesses and improving overall efficiency in revenue collection.
