Monday, August 5, 2024 - Treasury Cabinet Secretary nominee John Mbadi outlined his strategic plan to tackle Kenya's fiscal challenges.
While appearing before the
National Assembly Committee on Appointments for vetting, Mbadi argued that the
government could raise an additional Ksh600 billion in revenue if it reverted
to tax measures it applied in previous years.
He pointed out a historical
benchmark when Kenya successfully collected 18% of its GDP in taxes, compared
to the current rate of 14%.
"If we could just increase from 14% to 18% of GDP, you would be adding about 600 billion to our revenue base.
"So, you will be reducing the fiscal deficit and the fiscal gaps that we
have," he noted.
According to the nominee, this
initiative is pivotal to reducing the country’s fiscal deficit and addressing
significant economic gaps.
Mbadi emphasized the crucial
role of the Kenya Revenue Authority (KRA) in achieving this target.
His ambitious plan is driven by
the potential to significantly boost tax revenue by improving collection
efficiency.
The proposed reforms are seen as
a critical step towards achieving this goal.
The Kenyan DAILY POST
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