Government unveils ambitious plan to collect 4 trillion annually by 2027

The government has set Ksh4 trillion as its collection targets by 2027. On this, the state seeks to collect it through tax collection by implementing National Tax Policy, Medium Term Revenue Strategy.

This is according to the treasury cabinet secretary Professor Njuguna Ndungu who has revealed that the government is set to scale up its revenue collection even as it seeks to meet its obligations and make real the economic turnaround.

Speaking during the unveiling of the Kenya Kwanza administration maiden budget, Njuguna rolled out a raft of measures they seek to pursue even as the government steps up its effort for optimum collection of tax.

“In order to achieve this, the government is undertaking a combination of both tax administrative measures and tax policy reforms,” said Professor Njuguna.

The National Tax Policy which is before parliament outlines guidelines to tackle the stagnation in revenue collection including the expansion of the tax base, embracing international best practices, creating certainty and predictability of tax rates and bases, enhancing tax compliance, promoting investment and reducing tax expenditures or tax incentives.

The cabinet secretary has indicated that the government’s medium term strategy involves legal, administrative and policy measures that are set to transform the tax sector thus boosting revenue.

As part of the government medium revenue strategies, the treasury cabinet secretary says he seeks to broaden the tax base and contain the government’s overall expenditure.

Further, the treasury seeks to streamline the tax collection in the Kenya Revenue Authority by incorporation of a seamless process that is devoid of leakages through technology.