Tuesday, July 30, 2024 - President William Ruto has announced new measures aimed at enhancing accountability for the use of public resources.
In a statement, Ruto announced that the government would be undertaking reforms in VAT refunds, adding that the current process was opaque.
According to the Head of State, the country was spending close to Ksh400 billion in VAT refunds annually.
Therefore, he noted that it would be prudent to ensure that companies get the right amount of refunds.
“About Ksh400 billion is spent on tax expenditure every year, especially on VAT refunds, a process that is largely opaque, and with limited accountability.
"Within 90 days, I will be working with Parliament to provide a legislative and regulatory framework to make this process transparent, open, and accountable with a view to reducing this huge public expenditure and direct savings to the productive areas of the economy," he announced.
VAT refunds are usually made to companies that deal with products that are zero-rated or for tax withheld during the supply of goods.
On the other hand, the president reiterated that the country needed to focus on local production and reduce the importation of goods as a move to boost the economy.
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