Pulse Kenya is the most followed news and entertainment platform in Kenya. It informs and engages young Kenyans around the clock and provides updates by the hour.

Pulselive Kenya

The Kenya Revenue Authority is planning on integrating tax systems with telecommunication companies to enhance revenue collection. Details of the plan to expand the tax base to the informal sector are outlined in the 2023 Draft Budget Policy Statement shared by Treasury.

Inside plan to integrate KRA tax systems with telecommunication firms | Pulselive Kenya

Denis Mwangi

The Kenya Revenue Authority is planning on integrating tax systems with telecommunication companies to enhance revenue collection.&nbsp;

Details of the plan to expand the tax base to the informal sector are outlined in the 2023 Draft Budget Policy Statement shared by Treasury.&nbsp;

It is part of the measures to raise more revenue to meet the Sh4 trillion target by 2024.&nbsp;

KRA Commissioner General James Githii Mburu interacting with taxpayers at Times Towers

“As part of the economic turnaround plan, the government will scale up revenue collection efforts by KRA to Sh3 trillion in the FY 2023/24 and Sh4 trillion over the medium term,” the draft budget reads.&nbsp;

The integration of the tax system with telecommunication companies is seen as a move to tap <a href="https://www.pulselive.co.ke/bi/finance/kenyas-mobile-telecommunications-sector-adds-1673-new-jobs-in-2019/flkr8qc">additional revenue from the multi-billion industry</a>.

Telcos in Kenya make billions by providing various services to customers such as voice calls, text messaging, internet access as well as mobile money services.&nbsp;

In October 2022, President William Ruto noted that There are only 7 million people with KRA PINs, while in the same economy, over 30 million Kenyans spend and transact billions.

“The fact that this opportunity remains unclear to KRA demonstrates why radicle changes are necessary,” President Ruto said at the time.

One of the other revenue collection measures is the reduction of the VAT gap, which currently stands at 38.9 per cent.&nbsp;

KRA plans to fully roll out the electronic Tax Invoice Management System (eTIMS) to reduce this gap to 19.8 per cent.&nbsp;

READ: <a href="https://www.pulselive.co.ke/business/local/excise-mobile-transactions-vat-capital-gains-5-taxes-on-kenyans-businesses-in-2023/mvbfm03">5 taxes that await Kenyans &amp; businesses in 2023</a>

This system will help to automate the tax invoice process and improve compliance, ultimately increasing revenue collection.

The tax man also aims to reduce the corporate income tax gap from 32.2 per cent to 30.0 per cent.&nbsp;

KRA also plans to implement rental income tax measures by mapping rental properties and using a mobile App to track and monitor rental payments.

President William Ruto presiding over a passing out parade of the National Police College in Kiganjo, Nyeri County on January 10, 2023

Additionally, the agency will roll out measures at the Customs and Border Control to enhance revenue per unit, leveraging technology and data analytics.

Finally, KRA will focus on upscaling its technical capacity by increasing staff training and technology investment.&nbsp;

This will improve the efficiency and effectiveness of the tax collection process, and will ultimately increase revenue for the government.&nbsp;

Inside plan to integrate KRA tax systems with telecommunication firms

Business

lifestyle

Entertainment

News

Politics

Local

World

Celebrities

Music

Movies

Sports 

Fashion

Beauty & Health

Relationships & Weddings

Food & Travel

Lifestyle

Domestic

International 

Explore categories

The Pulse Influencer Awards has been set up to recognize and highlight bright lights in the influencer space in Kenya who are building active engaged communities around their niche or craft.

Influencer Awards

Company Pages

Breaking News & Top Stories | Pulselive Kenya

Pulse Kenya

Video

Checkout our authors for the latest content across entertainment, sports, business and more. Be first to receive exclusive updates with your free subscription straight to your phone | Pulselive Kenya

Authors | Pulselive Kenya

| Pulselive Kenya

Read the latest news across entertainment, sports, business and more. Be first to receive exclusive updates with your free subscription straight to your phone | Pulselive Kenya

Search for the latest content across entertainment, sports, business and more. Be first to receive exclusive updates with your free subscription straight to your phone | Pulselive Kenya

Search Results | Pulselive Kenya

Watch the latest videos across entertainment, sports, business and more. Be first to receive exclusive updates with your free subscription straight to your phone| Pulselive Kenya