Cabinet Secretary for the National Treasury and Economic Planning, Hon. John Mbadi, has called upon the Kenya Revenue Authority (KRA) to embrace advanced technological solutions to enhance revenue collection. Speaking at a recent meeting with KRA’s leadership, CS Mbadi emphasized the importance of continuous modernization in tax administration to streamline business processes and simplify tax transactions.
“Our modernization journey must align with our objectives and those of taxpayers. This approach will not only benefit taxpayers but also significantly boost our revenue mobilization efforts,” stated CS Mbadi.
The Cabinet Secretary underscored the transformative power of technology in reforming taxpayer services, improving operational efficiency, and ultimately enhancing revenue collection. He stressed the need for the KRA to expand the tax base, particularly in sectors that have traditionally been challenging to tax, to prevent overburdening existing businesses with excessive taxation.
CS Mbadi also assured KRA of the National Treasury’s support in developing policies to guide revenue mobilization efforts. He highlighted the significance of the National Tax Policy, which aims to expand the tax base, enhance fairness and equity in the tax system, and create predictability in tax rates.
“Through the Policy, KRA must ensure higher tax compliance, enhance the taxpayer experience, and reduce tax expenditure to minimize market distortions and tax refund pressures,” said CS Mbadi. He also pointed out that short-term policies, such as the Medium-Term Revenue Strategy (MTRS), would play a crucial role in helping KRA meet its revenue targets.
In response, KRA Commissioner General Humphrey Wattanga announced plans to revamp the Authority’s IT infrastructure to establish reliable systems capable of meeting business demands. He stressed that the adoption of cutting-edge technologies, including data science, machine learning, and Artificial Intelligence (AI), would strengthen KRA’s operational efficiency and ensure compliance.
“This technological development will not only simplify tax administration but also boost overall revenue performance and create a seamless experience for taxpayers,” said Wattanga.
KRA remains committed to implementing effective initiatives and robust policy reforms to fulfill its mandate of revenue collection on behalf of the government. As the drive for modernization continues, the role of technology in enhancing revenue collection will be paramount.
National Treasury Urges Technological Innovation to Enhance Revenue Collection
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