The Kenya Revenue Authority (KRA) is set to receive a significant boost in its efforts to combat tax evasion, as it has been allocated an additional Sh1.2 billion in funding.
This allocation will enable the KRA to hire extra intelligence and enforcement officers, who will work diligently to identify and apprehend tax cheats.
The move comes as part of the government's ongoing commitment to increasing revenue collection and reducing reliance on borrowing.
The Parliament's Budget and Appropriations Committee, during its review of the budget for the upcoming fiscal year starting in July, has requested the Treasury to provide billions of shillings to bolster the KRA's workforce.
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"Increase Sh1.2 billion for KRA to employ tax assistants," the Parliament's Budget and Appropriations Committee proposal stated.
This allocation will support revenue collection from new planned levies and intensify the pursuit of tax evaders, with the aim of raising a minimum of Sh400 billion in additional taxes.
In their scrutiny of the budget, the committee has augmented the expenditure plan presented by the Treasury to Sh3.67 trillion, representing an increase of Sh81 billion.
While this expansion puts added pressure on the KRA, it also demonstrates the committee's recognition of the importance of empowering the tax authority to fulfil its mandate effectively.
To bolster revenue generation, the government has proposed various tax hikes on items such as fuel, housing, mobile money transfers, and digital content.
However, these proposals have sparked discontent among citizens and opposition groups, who argue that the cost of living is already prohibitively high.
Despite the opposition, the government remains steadfast in its commitment to strengthening tax enforcement measures to ensure a fair and equitable tax system.
The allocation of these funds will enable the KRA to expand its workforce and deploy additional personnel with the necessary expertise to combat tax evasion effectively.
With this increased funding, the KRA will be better equipped to employ advanced intelligence techniques, streamline enforcement operations, and improve compliance among taxpayers.
By taking decisive action against tax cheats, the KRA aims to create a level playing field for all taxpayers and enhance the country's revenue base, ultimately contributing to the sustainable growth and development of Kenya.
As the proposal awaits parliamentary approval, all eyes are on the upcoming fiscal year, during which the KRA will harness its strengthened resources and bolstered workforce to tackle tax evasion head-on.