Gov’t is expanding the tax bracket and not increasing taxes- Mudavadi.
Gov’t is expanding the tax bracket and not increasing taxes: Prime cabinet secretary, Musalia Mudavadi has highlighted that Kenya kwanza is not overtaxing Kenyans.
Mudavadi challenged Kenyans to embrace taxing, citing that the government is just stabilising revenue collection parameters due to the economic distress the country is experiencing.
He stated,”There is no country that grows and becomes economically stable without taxing its people. The government gets its revenue to undertake its functions only through borrowing, which leads to debts and taxes collected from its people. Even in developed countries nobody likes or enjoys paying tax. But that remains the rule of thumb for a country to sustain itself.”
“We are working hard as a government to seal the loopholes of tax evasion even as we look for other avenues on how we can generate revenue. What we are encouraging and working on is expanding the tax bracket and not increasing taxes. That is why we are looking for opportunities for creating more jobs so that many people can be enrolled in the tax payment quarter,” he added.
Notably, Mudavadi Lauded the contributions from abroad. He stated that this is helping in building the country’s economy, revealing that the current remittance from the Kenyan Diaspora is very encouraging.
He stated,“What the country is collecting from Kenyans living abroad at the moment is almost surpassing our export targets. This is a key indicator that we need to have a stable foreign policy that will help us further our partnerships with other countries since we have seen this forms part of what helps us grow our country economically.”
On matters privatisation Bill 2023, Mudavadi stated,”What we want to encourage is proper management of these state-owned parastatals for them to generate revenue instead of government pumping in money day in day out to sustain them. Kenyans should take a leaf on what happened to KCB which was 100 per cent owned by the government some years ago and what happened at Kenya Posts and Telecommunications Corporation (KPTC) a government company that provided telecommunication and postal services across Kenya.”
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