Tax hike should be gradual

In Summary
  • There is need to look for more innovative ways to capture the untaxed who are the majority.
  • Kenyans should equally be given a breakdown of how funds raised in the last Finance Act were utilised before being asked to pay more.
Image: OZONE

Everyone would be happy if they lived in a country where they did not pay taxes.

Inevitably no country can operate without collecting revenue to fund service provision, and as the saying goes, in this world nothing is certain except death and taxes.

President William Ruto has made clear his intention to raise the percentage of tax revenue to 20-25 by the end of his term, arguing that Kenyans are among the least taxed people in the region and should therefore stop complaining.

The President went ahead to give an example of France, where taxation stands at 45 per cent.

What the President is not telling Kenyans is that in countries like France, your taxes give you access to free public education, quality medical care and timely payment of pensions.

The taxes also ensure infrastructure projects like roads and railway systems are well maintained.

The tax bracket in some of these countries is well spread out ensuring that employers and salaried people do not only shoulder the burden, which is the case in Kenya.

There is need to look for more innovative ways to capture the untaxed who are the majority.

Kenyans should equally be given a breakdown of how funds raised in the last Finance Act were utilised before being asked to pay more.

KRA says: " Kulipa Ushuru ni Kujitegemea (paying taxes grants you freedom", for now it seems paying taxes is a punishment for being employed.

Quote of the Day: "The best thing about the future is that it comes one day at a time.

Abraham Lincoln

He was nominated for president by the US Republican Party on May 18, 1860

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