In the next financial year, The National treasury will seek an additional 900billion from Kenyans by expanding its tax base and introducing new taxes to reach its target.
In the financial year 2023/2024 National Treasury CS professor Njuguna Ndung’u will seek to collect Ksh.3 trillion from Kenyans to fund the Ksh.3.6 trillion 2023/2024 financial year budget. With the focus on implementing economic recovery strategies of the new administration to set the economy on a steady and sustainable growth path.
The KRA will have a busy task in the next financial year as they are tasked with collecting Ksh 3 trillion from Kenyans in what many consider to be a struggle as the economy keeps changing.
In his budget policy, the treasury boss outlined measures that he will use to achieve this, including cutting all tax exemptions, increasing revenue collections by expanding the tax base and reducing government spending’s.
Some of the measures that will be undertaken by the tax man to increase collections include; Integration of the KRA tax system with the telecommunication companies which will allow KRA to track mobile money transactions. Tax expansion in the informal sector has a potential taxable base of Ksh. 2.8 Trillion.
Others include, implementation of Rental Income Tax Measures by mapping rental properties and increasing VAT collections by fully rolling out the electronic Tax Invoice Management System.
The measures undertaken are expected to net the the Taxman an additional Ksh. 900 billion
To finance the deficit, the government will borrow Ksh. 498 billion from domestic market and Ksh. 198 billion in external financing.
Division of the Taxes
In the policy statement, the big share will go to the Ministry of Education which will be allocated Ksh. 525.9 billion.
In addition to that, the Transport and Infrastructure docket will be allocated Ksh. 222 billion which will be used to completed pending projects in the country.
Also, The national treasury will get Ksh. 189 billion, with the Interior Ministry getting Ksh. 143 billion. The health docket will get Ksh.126.3 billion.
The Ministry of agriculture will get Ksh. 63.89 billion and the ministry of defense Ksh.121 billion.
The judiciary has been allocated Ksh. 18 billion, with the office of the president getting Ksh. 8.1 billion.
The CS say that they will eliminate non-priority expenditures such as expensive and unsustainable consumption subsidies.