Tax collectors might soon begin being physically seen in market places and other informal business areas as President William Ruto’s government seeks to bring in as much as possible in taxes.
Ruto has since introduced new tax policies as he seeks to bail the country out of the financial mess his allies say it is currently in, amid complains of over taxation from Kenyans and opposition leaders.
It’s now emerging that the National Treasury has noticed that a good number of people who deal in agricultural produce are not paying up, and has come up with a proposal on how to deal with them.
The new strategies will include sending tax agents to places where these people are to directly take the money from them, according to a newly published National Tax Policy (NTP).
“To achieve this objective, the government will explore ways of enhancing taxation of informal sectors including through increasing presence in big towns and cities and explore the mechanism for collecting taxes from the informal sector such as the appointment of tax collection agents,” it states.
The treasury says that it has noticed that this sector, if fully exploited, can hand it Sh2.8 trillion in taxes.
“The potential taxable base of the informal sector is Sh2,800 billion as per the MSME survey,” the ministry said in the 2023 Draft Budget Policy Statement (BPS).
The development comes amid complains from opposition leader Raila Odinga, who has pointed out that Ruto has turned back to punish the same people he promised to lessen the tax burden for; the low income earners popularly known as Hustlers.
But those close to Ruto are blaming him for the situation, alleging that it is only after his truce with former President Uhuru Kenyatta that the government went into loans, debts Ruto now has to pay.
by: Curtis-Otieno