KRA seeks to raise taxes from MSMEs

The Kenya Revenue Authority is looking into ways of raising more taxes from the micro and small-scale enterprises (MSMEs) sector.

KRA’s acting commissioner for domestic taxes Mwangi Mugo speaking in Embu said the MSME sector contributes 35 to 45 percent of GDP and up to 70 percent of employment yet they only contribute six percent of domestic revenue.

He is engaging them so as to see if they can raise their tax contribution to at least 20 percent. MSMEs actually have held the greatest potential for revenue growth.

The Chairman of the Embu Branch of the Kenya National Chamber of Commerce and Industry Mugo Mate has told KRA to consider giving new businesses tax holidays as a way of generating more taxpayers.

Mate has also called on the government to rein in those who pilfer government money saying reports of mega scandals in government killed the morale of those who would like to pay their tax.

The Chairman of the Embu Jua Kali Association David Munyi Njagi has said that KRA most of his members fail to pay due taxes because they did not know which taxes were due or even how to compute their tax liability.

He pledges his association’s support in convening meetings where KRA can educate their member on matters.

He adds that such meetings will also be used to foster good relations between KRA and the Jua Kali operatives.