High taxes no cure for fiscal woes

taxes

Addressing the challenges posed by high excise taxes and illicit trade requires a multi-faceted approach that combines fiscal, regulatory, enforcement and public awareness measures. PHOTO | SHUTTERSTOCK

In the face of growing economic headwinds, the Kenya Revenue Authority (KRA) has grappled with slow growth in tax revenue, highlighting the need for innovative solutions rather than resorting to higher taxation.

Despite the introduction of new higher taxation measures, the current fiscal year’s first quarter registered its slowest pace of increase since 2018, excluding the Covid-19 pandemic year.

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Note: The results are not exact but very close to the actual.