Treasury Cabinet Secretary (CS) John Mbadi has announced plans to cut tax rates and improve compliance.....CLICK HERE TO READ THE FULL ARTICLE>>>
Mbadi said his office is working on modalities to enhance domestic revenue mobilisation by the Kenya Revenue Authority (KRA) over the medium term.
Why reduced tax rate will enhance KRA’s collection
Speaking during the launch of the 2025/26 Budget Preparation Procedure on Monday, September 9, CS Mbadi noted that the move will create tax rates that build the tax base and enhance compliance.
“In the medium term, we want to reduce tax rates. We are going to reduce VAT from 16% to about 14%, corporate tax from 30 to 25%, PAYE and other taxes,” said Mbadi.
Mbadi explained that the work of the Treasury is not to increase the tax rate but to reduce it.
This is part of the National Treasury’s medium-term revenue strategy, which comes at time the government is struggling to balance its fiscal deficit.
President William Ruto withdrew the Finance Bill 2024 after bowing to pressure from nationwide protests in June.
This saw the country’s deficit hit KSh 767 billion, up from the projected KSh 597 billion.
The government implemented measures aligning with the priorities of available resources and collected revenue….CLICK HERE FOR MORE ARTICLE>>>
