According to projections made by the Kenya Revenue Authority, Sh3 trillion would be collected in the upcoming fiscal year (2023-2024), National Treasury Cabinet Secretary Njuguna Ndung’u informed lawmakers on Tuesday.
Speaking before the National Assembly’s Budget and Appropriations Committee, the CS stated that a combination of administrative and tax policy measures will be used to achieve the aim. With a reduction in the VAT gap from 39.9% to 19.8% and a reduction in the corporate income tax gap from 32.2% to 30.0%, he claimed KRA will increase tax compliance.
He added, “We will also link the corporate tax system with communications businesses.
Ndung’u added that the administration is eager to increase the tax base in order to reach the goal.
“We will also implement steps at the customs and border control by using technology and improved data analytics to enhance revenue per unit,” the official stated.
He continued by saying that the government would also upgrade KRA’s technical capabilities through personnel, skills, and technology. Ndung’u added that the government would cut back on tax expenditures and waivers, eliminate non-priority spending, and increase the usage of P3s.
The CS informed the committee that in addition to implementing an end-to-end e-procurement system, the government will also streamline the planning, implementation, delivery, and sustainability of projects involving public investment. He mentioned that Sh3.6 trillion is expected to be spent by the government overall during that time.
“The expected fiscal deficit (including grants) is Sh720 billion,” he stated.
Ndung’u stated that both domestic and external borrowing (Sh198.6 billion) will be used to cover the deficit (Sh521.4 billion).