Monday, August 5, 2024 - Treasury Cabinet Secretary nominee John Mbadi outlined his strategic plan to tackle Kenya's fiscal challenges.
While appearing before the National Assembly Committee on Appointments for vetting, Mbadi argued that the government could raise an additional Ksh600 billion in revenue if it reverted to tax measures it applied in previous years.
He pointed out a historical benchmark when Kenya successfully collected 18% of its GDP in taxes, compared to the current rate of 14%.
"If we could just increase from 14% to 18% of GDP, you would be adding about 600 billion to our revenue base.
"So, you will be reducing the fiscal deficit and the fiscal gaps that we have," he noted.
According to the nominee, this initiative is pivotal to reducing the country’s fiscal deficit and addressing significant economic gaps.
Mbadi emphasized the crucial role of the Kenya Revenue Authority (KRA) in achieving this target.
His ambitious plan is driven by the potential to significantly boost tax revenue by improving collection efficiency.
The proposed reforms are seen as a critical step towards achieving this goal.
0 Comments