The government is targeting to increase tax compliance among Micro Small and Medium Sized Enterprises by offering them lower corporate tax.
East African Affairs Cabinet Secretary Adan Mohammed says various government agencies are working closely in integrating all tax payment regimes to ease tax payment and boost compliance.
Tax avoidance or evasion remains among the greatest challenges to tax collection.
While speaking during the launch of the 2019 Paying Taxes Index, East African Affairs Cabinet Secretary Adan Mohammed said the government is reforming tax administration as well as lining up incentives that will encourage compliance especially among Micro Small and Medium Sized Enterprises.
In the latest Ease of doing business index by the World Bank, Kenya did not perform very well in the paying tax index by her East African neighbors.
Ironically, according to the paying taxes report, economies that did better than Kenya had lower corporate tax.
Experts have called for sealing of all loopholes and combine tax payments into one holistic payment regime to avoid lengthy consumer experiences.